The encapsulation technique is a rapidly evolving technology with numerous beneficial applications in the dairy industry. Encapsulation methods are essential for enhancing the stability, functionality, and customization potential of dairy products. The aim of this study was to develop a new yogurt with enhanced sensory, nutritional, and antioxidant qualities by incorporating alginate-encapsulated persimmon (Diospyros kaki L.) extracts. The titratable acidity, pH, whey syneresis, water holding capacity, color parameters (L*, a*, b*, Delta E*(ab)), sensory characteristics, phenolic content, and antioxidant activity of yogurt samples [C (control), FP-1 and FP-5 (containing 1% and 5% free persimmon extract, respectively), and MP-1 and MP-5 (containing 1% and 5% alginate-encapsulated persimmon extract, respectively)] were evaluated on the 1(st) and 21(st) days of storage. In the main findings, the variations between samples in terms of L* and Delta E*(ab) values on the first day of storage were found to be significant (p < 0.05). The highest Delta E*(ab) values were found on the first day of storage for MP-5 and MP-1, with 9.46 +/- 0.41 and 7.94 +/- 1.48, respectively (p < 0.05). Samples with encapsulated extracts demonstrated greater antioxidant potential and phenolic content compared to those with free extracts, due to the enhanced preservation of phenolic compounds and their improved bioavailability (p < 0.05). The overall acceptability scores of the yogurt samples during the storage period indicated that the highest score was achieved by treatment (MP-5), which involved yogurt with 5% alginate-encapsulated persimmon (p < 0.05). Encapsulation of persimmon extract by extrusion effectively enhanced its stability and enabled its use as a functional ingredient in yogurt. The fortified yogurts remained stable throughout storage and offered improved bioactive properties and favorable sensory characteristics, suggesting potential as a novel functional dairy product.