Controlled release of Emblicanin rich water soluble extract of Emblica officinalis (EEO) from the inner phase of water-in-oil-in-water type double emulsion (DE), during in vitro digestion and phagocytosis was investigated. It was observed that release of EEO (measured as total polyphenols and gallic acid by HPLC) from inner phase of DE was maximum during intestinal digestion followed by gastric and salivary digestion. Main reason was increased particle size of emulsion droplets and change in zeta potential by the action of digestive enzymes. ACE inhibitory activity and antioxidant activity [determined by ABTS (99.58 ± 7.24 mM/mL), DPPH (76.93 ± 0.93 µM/mL) and FRAP (6.34 ± 0.13 mM/mL)] was observed on the higher side in the intestinal digesta of EEO-encapsulated DE (EEODE) as compared to salivary and gastric digesta. However, reverse trend was observed in control sample (unencapsulated-EEO). Phagocytic activity of EEODE increased with increasing its concentration of 2-10 µL. These results indicated that the developed DE matrix was effective in protecting active components of EEO during harsh digestive conditions as evident by sustained/target release. This newly developed EEODE formulation can be used as functional ingredient in the preparation of different dairy and food based functional products.