<p>In this study, an oil-in-water emulsion of peppermint essential oil was prepared and subsequently utilized in the formulation of functional sugar candy. The production efficiency of the peppermint essential oil emulsion was determined to be 72.6%. Structural characteristics of the resulting candies were analyzed using FTIR, SEM, and XRD techniques. Key parameters of the emulsion, including particle size, zeta potential, electrophoretic mobility, and polydispersity index (PDI), were measured at 132&#xa0;nm, -36 millivolts, 0.00028 cm²/Vs, and 0.365, respectively. The addition of the emulsion significantly increased the moisture and ash content of the herbal candy. However, the clarity of the samples decreased as the concentration of the essential oil emulsion increased, and this addition resulted in a higher yellowness factor (b*). The presence of emulsified essential oil (as opposed to free essential oil) generally contributed to increased surface stickiness and texture hardness of the candies. Importantly, the antioxidant properties of the candy containing encapsulated peppermint essential oil were enhanced. Moreover, the release rate of the essential oil was significantly reduced with higher emulsion content, indicating effective stabilization of the essential oil. Against&#xa0;<i>Candida albicans</i>, candies containing 100% emulsified peppermint essential oil exhibited an inhibition zone of 15&#xa0;mm in diameter. FTIR analysis confirmed electrostatic and physical interactions between the components of the candy. Overall, peppermint essential oil, whether free or emulsified, contributed to strengthening the crystalline structure of the candy. Sensory evaluation revealed no significant difference in overall acceptance between infusions made with free essential oil and those made with emulsified essential oil, demonstrating that the products possess notable antioxidant and antifungal properties, which may appeal to consumers.</p>