This chapter explores microfluidization as a technique for encapsulating bioactive compounds such as vitamins, minerals, antioxidants, polyunsaturated fatty acids, and essential oils for application in functional food development. Microfluidization is a novel processing technology that utilizes high-pressure forces to produce stable emulsions and liposomes at the micro- and nanoscale levels. It offers remarkable benefits such as enhanced stability, bioavailability, bioaccessibility, and controlled release properties. Various factors, including the selection of emulsifiers, encapsulating agents, and specific process parameters like pressure, cycle, and design of the microfluidizer, influence the particle size and encapsulation efficiency achieved through this technique. Microfluidized encapsulated ingredients are versatile and can be utilized to develop a variety of functional foods. This chapter also compares microfluidization with traditional techniques, evaluating their efficiency in encapsulating bioactive compounds. It concludes by highlighting ways to optimize microfluidization processes for encapsulation, aiding in the development of functional foods that meet nutritional and health-focused consumer demands.