Probiotics have been incorporated into a range of dairy products including ice cream, yoghurt, cheese, milk powder and frozen dairy desserts. Since the viability and stability of probiotics pose marketing and technological challenges, this research was proposed to microencapsulate two proven probiotics viz., Lactobacillus acidophilus (LA-5) and Lactobacillus casei (NCDC-298) using extrusion method of encapsulation to stabilize the cells, enhance their viability and stability during production and storage of dairy functional products. The developed encapsulated probiotic ice cream were subjected to physicochemical analysis, organoleptic evaluation and survivability of the probiotic cultures in ice cream during storage period. This research was concluded that probiotic survivability in ice cream can be significantly improved by extrusion method of microencapsulation technique using three combined wall materials viz., sodium alginate and starch with whey protein concentrate showed good viability for probiotic strains and during different environmental condition without altering physico-chemical and sensory properties of probiotic ice cream.