The functional effect of an essential oil (EOs) blend in the form of a microcapsule was studied and applied to woven linen fabric to meet the requirements of medical textile products. Four EOs (eucalyptus, lavender, aloe vera, and citronella) were blended at three levels to prepare the microcapsules. The Box & Behnken method was adopted for sampling. Eight microcapsules were chosen from 15 samples based on their antibacterial effect. These microcapsules were prepared through a complex coacervation method and then applied to woven linen fabric by the dip method, which can benefit uniformity, penetration, and suitability for delicate fabrics. The capsule size and presence were confirmed by scanning electron microscope (SEM) Optical Microscope (OM) images. Fourier Transform Infrared spectroscopy (FTIR) and energy-dispersive X-ray spectroscopy (EDX) were used to identify the elemental composition and functional groups. The fabric samples L1 and L5 show significant antibacterial inhibition ( 25 & 20 mm, respectively) against E. coli and S. aureus. Samples L7 and L12 exhibited exceptional antibacterial activity against Enterococcus, with inhibition zones of 30 and 27.8 mm. Sample L7 showed a significant effect on mosquito-repellent effect, maintaining approximately 90% efficacy both before and after washing, in comparison to the untreated sample. The antioxidant activity of the samples L1, and L7 are in the range of 70% to 80%. The drug release of samples L7 and L11 is high (80 to 90%) in an ethanol-water system derived from Higuchi's model. Hence the approach may be recommended for medical textile products.