Background: Litsea cubeba (Lour) Persoon (LC) is one of the important plants for spice and oil resources plants with high commercial value. In recent years, consumers' desire to reduce the use of synthetic preservatives and antibiotics in poultry diet based on safety principles has stimulated research on the bioactivity and application of "clean-label" LCEO. However, the safety limits, solubility, photothermal stability and adverse effects on sensory evaluation of LCEO have limited its expanded applications. Encapsulation has been used to address such quality deficiencies. Scope and approach: This paper reviews the recent research progress of LCEO in the food industry. We summarize the active ingredients, encapsulation techniques and bioactivities of LC. We also provide an overview of the direct and indirect use of LCEO in the food industry, with a strong emphasis on advances in essential oil encapsulation strategies and delivery systems for food preservation. Finally, the temporal limitations of the applications and future research trends of LC are discussed. Insights are provided for advancing the development of food packaging for LC. Key findings and conclusions: LCEO has the potential to be used as food additives, food packaging additives and fumigation repellents in food preservation and agricultural storage. The monoterpenes and sesquiterpene-rich composition of LCEO varies depending on genetics, growth environment and extraction method, resulting in varying degrees of broad-spectrum antimicrobial, antioxidant, and anthelmintic activity. Encapsulation strategies (emulsions, inclusion complexation, liposomes) and delivery systems (coatings, films) are expected to protect LCEO and allow for a sustained release, promoting food storage and freshness.