This work aims to protect oat oil and produce new formulated products for food, cosmetics, pharmaceutical, and household care applications. Specifically, nanocellulose and food-grade cellulose derivatives will be used to stabilize oat oil-in-water emulsions which will be dried into oil powders using spray drying. The powders appear dry but are >90% liquid oil and can be used in the dry form or reconstituted by hand-shaking them in water. Attempts to isolate nanocellulose from oat hulls will be undertaken as a step towards “all oat” dry oat oil powders. This new processing method and encapsulation strategy will have economic, environmental and societal benefits for the agricultural sector and Canada.