Saccharomyces cerevisiae JCM 7255 was tested as a probiotic candidate in tilapia after encapsulating and freeze drying. Viability and morphology during storage and during transit through simulated gut and bile conditions were determined. Growth performance, anti-streptococcal activity and gut mucosal immune parameters were also tested. The viability of encapsulated yeasts was significantly high in simulated gastric and bile conditions and remained high after storage at room temperature for 14 days. The morphology of free S. cerevisiae revealed rough, bumpy, ruptured surface during incubation in gut and bile conditions. Agar spot anti-streptococcal activity showed inhibition of 20 out of 30 strains of Streptococcus agalactiae. Supplementation improved the intestinal structure and growth performance in tilapias. Intraepithelial lymphocytes in the proximal intestine were significantly observed. Lower cumulative mortality after the oral streptococcal challenge was also seen. The results suggest that encapsulated S. cerevisiae JCM 2755 could be a potential probiotic strain in tilapia culture.