The objective of this study was to investigate the effect of microencapsulated bioactive compounds from lemongrass mixed dragon fruit peel pellet (MiEn-LEDRAGON) supplementation on fermentation characteristics, nutrient degradability, methane production, and the microbial diversity using in vitro gas production technique. The study was carried out using a completely randomized design (CRD) with five levels of MiEn-LEDRAGON supplementation at 0, 1, 2, 3, and 4% of the total dry matter (DM) substrate. Supplementation of MiEn-LEDRAGON in the diet at levels of 3 or 4% DM resulted in increased (p < 0.05) cumulative gas production at 96 hours (h) of incubation time, reaching up to 84.842 ml/ 0.5 g DM. Furthermore, supplementation with 3% MiEn-LEDRAGON resulted in higher in vitro nutrient degradability and ammonia-nitrogen concentration at 24 h of the incubation time when compared to the control group (without supplementation) by 5.401% and 11.268%, respectively (p < 0.05). Additionally, supplementation with MiEn-LEDRAGON in the diet led to an increase in the population of Fibrobacter succinogenes at 24 h and Butyrivibrio fibrisolvens at 12 h, while decreasing the population of Ruminococcus albus, Ruminococcus flavefaciens, and Methanobacteriales (p < 0.05). Moreover, supplementation of MiEn-LEDRAGON in the diet at levels of 2 to 4% DM resulted in a higher total volatile fatty acids (VFA) at 24 h, reaching up to 73.021 mmol/L (p < 0.05). Additionally, there was an increased proportion of propionic acid (C3) and butyric acid (C4) at 12 h (p < 0.05). Simultaneously, there was a decrease in the proportion of acetic acid (C2) and the ratio of acetic acid to propionic acid (C2:C3), along with a reduction of methane (CH) production by 11.694% when comparing to the 0% and 3% MiEn-LEDRAGON supplementation (p < 0.05). In conclusion, this study suggests that supplementing MiEn-LEDRAGON at 3% of total DM substrate could be used as a feed additive rich in phytonutrients for ruminants.© 2024. The Author(s).