Abstract: A &bgr;-D-galactosidase which is encapsulated with fatty acid ester, does not exert its hydrolysis function in milk but hydrolyze lactose in the human body. Hence, the milk containing the encapsulated &bgr;-D-galactosidase, does not change in sweetness with storage and is digestible to the &bgr;-D-galactosidase-deficient people. In addition, the milk can maintain its characteristic taste without off-flavor by virtue of the excellent feature of fatty acid ester.