Spray chilling is an emerging encapsulation technology useful to produce particles of sizes ranging from a few microns to several millimeters to enhance the bioavailability of insoluble compounds. It is a lipid-based system in which fat is melted and mixed with active component, then atomized and cooled to obtain microparticles. It can improve the stability, reduce hygroscopicity, control release, and change solubility and functionality of the products. The technology is simple, low cost, easy to scale up, environmentally friendly, and does not require high temperature. This chapter overviews the principles and process of spray chilling, structure and characterization methods available, advantages and challenges of the technology as well as potential application in food and pharmaceutical industries.