PURPOSE OF REVIEW: Fucoxanthin is an orange-red xanthophyll carotenoid found in brown seaweeds and known for its many bioactive properties. In recent years, the bioactive properties of fucoxanthin have been widely explored, making it a compound of immense interest for various health applications like anti-cancer, anti-tumour, anti-diabetic and anti-obesity properties. However, the poor bioavailability and instability of fucoxanthin in the gastrointestinal tract have major limitations. Encapsulation is a promising approach to overcome these challenges by enclosing fucoxanthin in a protective layer, such as liposomes or nano-particles. Encapsulation can improve the stability of fucoxanthin by protecting it from exposure to heat, pH, illumination, gastric acids and enzymes that can accelerate its degradation. RECENT FINDINGS: Studies have shown that lipid-based encapsulation systems such as liposomes or nano-structured lipid carriers may solubilise fucoxanthin and enhance its bioavailability (from 25 to 61.2%). In addition, encapsulation can also improve the solubility of hydrophobic fucoxanthin, which is important for its absorption and bioavailability. This review highlights the challenges involved in the absorption of fucoxanthin in the living system, role of micro- and nano-encapsulation of fucoxanthin and their potential to enhance intestinal absorption.