Water dispersible carotenoid formulations and preparation thereof. Water- .dispersible carotenoid fonnulations are prepared by adding finely pulverized carotenoid powder to a water dispersible matrix to which an antioxidant namely ascorbic acid is added, following which the dry blended powder is coated with e~ible oil using a suitable blender would thus obtain a powder which will evenly disperse in water at room 35 deg C. The produce can be used for coloring foods and is stable to creaming. The produce can be used for dry filling in hard gelatin capsules or can be granulated for tablet use.