Abstract: This invention is directed to a method for preparing frozen flavor capsules as well as a method for incorporating these flavor capsules into low-fat frozen or refrigerated desserts. The invention also encompasses the capsules themselves, as well as dessert products incorporating these capsules. The capsules are prepared by first forming discrete composite capsules having a flavor encapsulated in an oil, and then freezing these capsules to solidify the oil and form discrete frozen solid flavor particles. Because the oil is essentially a liquid at ambient temperature, the oil liquifies in the mouth upon consumption, providing a balanced flavor release from, the previously protected flavor capsule.