Encapsulated polyunsaturated fatty acids which can be incorporated into a baked good dough or batter without smearing or dissolution of the encapsulated product contains film-coated oil droplets encapsulated by a matrix material, a liquid plasticizer which plasticizes the matrix material, and an acidic antioxidant dispersed throughout the plasticized matrix material which helps to prevent oxidation of the polyunsaturated fatty acids; and the production of a fishy taint or malodors and mal-flavors. The matrix material includes a starch component which helps to avoid a rubbery consistency and texture and promotes extrudability, and a protein component, which hardens the encapsulated product and prevents substantial smearing and dissolution during dough or batter mixing and baking. The matrix material protein content is from about 25% to about 77.5% by weight of the matrix material. The protein content of the encapsulated product is from about 15% to about 65% by weight, of the encapsulated product.
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