The application of essential oils in the biomedical and food industries has sparked considerable interest, owing to their innate biological activities, multifaceted functional properties, and potential health benefits. Besides, their volatile nature and sensitivity to environmental factors pose challenges to their stability and efficacy in industrial applications. Recent literature indicates that encapsulation within natural biopolymers is an effective strategy for enhancing the functionality and application potential of essential oils. Thus, this review discusses the common proteins and polysaccharides utilized for encapsulation, the techniques employed for encapsulating essential oils, and the biological properties of essential oils encapsulated in protein-polysaccharide biopolymers, along with their applications in the biomedical and food industries. In general, this review provides valuable insights for researchers, underscoring the importance of these research domains in further enhancing the functional properties and industrial applications of encapsulated essential oils.