Turmeric extract (TE)-loaded oleogels (TE-OG) was fabricated by an emulsion template technique using xanthan gum (XG) and soy lecithin (SL) as oleogelators. The formulation for TE-OG was optimized using 0.32% XG, 1.2% SL, and 1.0% TE. The optimized TE-OG had a minimal particle size of 810.23 ± 10.68 nm as measured by the dynamic light scattering (DLS) method, and a high encapsulation efficiency (EE) of 96.62 ± 0.56%. Additionally, the optimized TE-OG exhibited a favorable zeta potential of -27.73 ± 0.44 mV, indicating the good stability of the TE-OG due to the electrostatic repulsion between particles. TE-OG formulated with 0.32% XG and 1.2% SL was subjected to frequency sweep testing to evaluate its solid-like rheological behavior. The oil-binding capacity (OBC) of TE-OG was consistently maintained above 99.99%. In vitro digestion of TE-OG demonstrated the potential of the emulsion template for controlled release, with less than 20% of the encapsulated curcumin being released in simulated gastric fluid (SGF), whereas nearly 70% was released in the simulated intestinal fluid (SIF). Moreover, TE-OG affected the rapid release of free fatty acids (FFAs), which have a positive effect on the digestion of triacylglycerols found in soybean oil (SO). TE-OG was further used as an alternative to commercial butter to produce pound cakes, and their rheological properties were compared to those of the pound cake prepared using commercial butter. The pound cake prepared using TE-OG showed a noticeable decrease in hardness from 10.08 ± 1.39 N to 7.88 ± 0.68 N and increased porosity, demonstrating the inherent capability of TE-OG to enhance the overall quality standards of bakery products.