The Alginate-chitosan microspheres encapsulated with LGO prepared by employing ionotrophic gelation technique were investigated by Scanning Electron microscopy (SEM), Fourier Transform Infra Red spectroscopy (FT-IR) and Gas Chromatography Mass Spectroscopy (GC-MS). SEM micrographs observed a spherical morphology with size ranged 1.82-2.08 mm. FT-IR and GC-MS spectral data confirmed the presence of LGO in the prepared microspheres.  The microspheres allowed releasing a higher amount of LGO into the simulated intestinal fluid. A significant antibacterial and antioxidant activity of LGO encapsulated microspheres were observed at a lesser concentration compared to the unencapsulated lemongrass oil. This fact was attributed to both the protection of the chitosan barrier and the strong interaction between LGO and chitosan. In conclusion, LGO loaded alginate/ chitosan microspheres have potential applications as a greener agent for medical purposes.