The main limitation associated with the oral delivery of ascorbyl palmitate, a potent food antioxidant, is its susceptibility to oxidative deterioration. The main objective of the current research was to encapsulate ascorbyl palmitate into corn starch matrix using extrusion cooking and evaluate its release behavior and oxidative stability. Results showed that ascorbyl palmitate was efficiently encapsulated (96.06–99.28%) in the starch matrix using the extrusion technique. The release behavior of ascorbyl palmitate from the extruded starch matrix during simulated upper gastrointestinal tract conditions was slow but steady (18.92–28.32% after 180 min) and presented a sustainable antioxidant activity. Acid treatment (pH 2.0) increased the release rate of ascorbyl palmitate from the extruded starch matrix. Furthermore, the antioxidant capacity of ascorbyl palmitate released from the extruded samples stored in both darkness and under UV radiation at 40 °C was found to be remarkably retained (p > 0.05) for up to three months.