Retinyl acetate (RA) was effectively incorporated into electrospun nanofibers of poly(vinyl alcohol) (PVA) containing beta-cyclodextrin (beta-CD) in order to form inclusion complexes for encapsulation to prolong shelf life and thermal stability. The physical and thermal properties of encapsulated RA were determined by scanning electron microscopy (SEM), X-ray diffraction (XRD), and differential scanning calorimetry (DSC). The nanofibers of PVA/RA and PVA/RA/beta-CD exhibited bead free average fiber diameters of 264 +/- 61 and 223 +/- 49 nm, respectively. The surface chemistry of the functional nanofibers was investigated by X-ray photoelectron spectroscopy (XPS). Thermogravimetric analysis (TGA) demonstrated different thermal stabilities between the bioactive and the polymer, with and without beta-CD. Square-wave voltammogram peak current changes were used to follow the release kinetics of RA from the nanofibers. Results indicate that RA coated inside PVA/beta-CD nanofibers was protected against oxidation much better than RA in PVA nanofibers and should extend the shelf life. In addition, RA encapsulated in the PVA/beta-CD had better thermal stability than PVA nanofibers.