pray drying technique was used to fabricate Vitamin E loaded nanocapsules using Octenyl Succinic Anhydride (OSA) modified starches as emulsifiers and wall materials. Several physicochemical properties of modified starches that are expected to influence emulsification capacity, retention and storage stability of Vitamin E in nanocapsules were investigated. High Degree of Substitution (DS), low Molecular Weight (Mw) and low interfacial tension improved emulsification properties while Oxygen Permeability (OP) and Water Vapor Permeability (WVP) affected the film forming properties. The degradation profile of Vitamin E fitted well with the Weibull model. Nanocapsules from OSA modified starches MS-A and MS-B retained around 50% of Vitamin E after a period of 60 days at 4–35 °C. Reduced retention and short half-life (35 days) in nanocapsules fabricated using MS-C at 35 °C were attributed to autoxidation reaction occurred due to poor film forming capacity. These results indicated that low molecular weights OSA modified starches were effective at forming stable Vitamin E nanocapsules that could be used in drug and beverage applications.