Microencapsulation of flavor was carried out by molecular inclusion process using $eta$-cyclodextrin (${eta}CD$). ${eta}CD$-flavor complex was prepared at various flavor-to-${eta}CD$ ratios (1:6-1:12) to determine the effect of ${eta}CD$ concentration on the inclusion efficiency. Maximum total oil retention and minimal surface oil content were obtained at flavors to ${eta}CD$ ratio of 1:10. The physical properties and controlled release pattern of flavors from ${eta}CD$-flavor complex were measured and compared with spray-dried microcapsules prepared using carbohydrate wall system. ${eta}CD$-flavor complex showed higher total oil retention and surface oil contents, smaller mean particle size, lower moisture uptake, and higher oxidation stability than spray-dried microcapsule. Oxidative stability of flavor was correlated with hygroscopicity of wall materials. The controlled release mechanism was highly affected by temperature and characteristics of wall materials.