Objective: The aim of this study is to evaluate and compare the antifungal activity of essential oil of Origanum vulgare and Rosmarinus officinalis collected in north region of Albania, and how is it modified by microencapsulation with β-cyclodextrin (β-CD). Methods: Chemical composition of both isolated essential oils was determined by gas chromatography/mass spectrometry. The disc diffusion method was used to screen the antifungal activities of essential oils, before and after microencapsulation, against following dermatophytes: M. gypseum, M. canis, A. cajetani, T. violaceum, T. mentagrophytes, E. floccosum,T. rubrum, T. tonsurans and phytopatogens B. cinerea and P. oryzae. Results: The major identified compounds for Rosmarinus officinalis and Origanum vulgare essential oils, by GC/MS analyses, were respectively: 1, 8cineol, camphor, verbenone, borneol and carvacrol, thymol for O. vulgare essential oil. Maximum antifungal activity of essential oil of O. vulgare was observed against T. tonsurans, T. violaceum, T. floccosum,T. mentagrophytes. Meanwhile the essential oil of R. officinalis exhibits a moderate antifungal activity against T. violaceum. The essential oils demonstrated higher inhibition zones after microencapsulation in β-cylcodextrine. Conclusion: From the results obtained we can conclude as follows: 1. Antifungal activity of Origanum vulgare essential oil is higher compare to the antifungal activity of Rosmarinus officinalis ones due to high content of carvacrol in Origanum vulgare essential oil. 2. Microencapsulation does not change the antifungal activity of both essential oils; this should consent to achieve the optimal antifungal activity with minimum side effects of essential oil, and improved stability upon storage due to benefits of microencapsulation in β-cyclodextrine. Moreover, after encapsulation improved activity were observed. © 2015, International Journal of Pharmacy and Pharmaceutical Sciences. All rights reserved.