Microencapsulation of probiotic cells is now under special attention because it is considered as the best method for improving the survivability of probiotics. In the present study, alginate, alginate-skim milk and chitosan coated alginate-skim milk coated microspheres of probiotics such as L.rhamnosus and L.plantarum were prepared. The encapsulating efficiency was found to be above 96% for L.plantarum and above 98% for L.rhamnosus. The skim milk was found to be a better matrix for encapsulation and chitosan coating, making the microspheres stronger compared to uncoated microspheres. The stability study of encapsulated and non-encapsulated probiotic was done for a month. The tolerance of encapsulated probiotics in artificial gastric fluid and release profile of probiotic in simulated intestinal fluid was also studied. This is the first study where chitosan coated alginate-skim milk was used for probiotic encapsulation and suggests promising encapsulating/enfolding material for improving the probiotics survivability.