Turkey tail mushrooms (Trametes versicolor) were microencapsulated with inulin, a natural prebiotic fiber, creating powders with stronger antioxidant, anti-inflammatory, and anti-cancer activity. The process improved stability and bioavailability, with compounds effectively released during digestion to inhibit enzymes like COX-1 and COX-2 and suppress colon cancer cell growth. This combo highlights a promising way to design functional mushroom supplements with greater potency and gut health synergy.