Marigold oleoresin has been widely used in the pharmaceutical industry because of its medicinal properties. In this study, marigold oleoresin was encapsulated in chitosan grafted sodium acrylate-co-acrylamide. Emulsification process was used to prepare the beads containing marigold oleoresin and the grafted polymer was characterized using FTIR, SEM and TGA. The properties of the beads such as size, swelling characteristics, encapsulation efficiency and release kinetics were studied. The bead size was in the range of 0.46 to 1.05 mm. The antimicrobial activity and cyto-compatibility studies of marigold oleoresin were also conducted. The marigold oleoresin beads showed zero order release kinetics.