The aim of this study was to investigate microencapsulation of palm oil fractions (palm olein (POL) and 90% palm olein+10% palm stearin (POS)) using skim milk powder (SMP) and maltodextrin (MD) by spray drying. Twenty-seven emulsions with POL were prepared to determine appropriate solid content (SC) and oil/coating material ratio (O/CM) of the emulsions to be fed into the spray dryer. Emulsion properties, such as viscosity and stability, were affected by SC and coating materials. The effects of coating materials used in microencapsulation of POL and POS were also tested by using different ratios of SMP and MD. The microencapsulation efficiency (69.28–84.97%), the microencapsulation yield (14.50–31.79%), and the peroxide value (4.12–7.07 meq O2/kg oil) of the powders were affected by the coating materials (P < 0.05).