This work analyzed the probiotic properties of isolates from cereal-based Indian fermented food. The isolates were tested for lactic acid production, cell hydrophobicity, antibiotic sensitivity, sensitivity to acidic conditions, and increased salt concentration. This study also evaluated the ability of the probiotic isolates to ferment sugars and their antioxidant activity. The potential probiotic L. plantarum J9 isolated from jangri batter was encapsulated using 2.5% sodium alginate and CaCl2 by extrusion method with an encapsulation efficiency greater than 99%. After 2 h of incubation, in simulated gastric juice the encapsulated J9 cells reduced from 11.8 to 6.8 log10 CFU/ml however, free J9 cells reduced from 11.8 to 1.89 log10 CFU/ml. Similarly, encapsulated J9 cells reduced from 11.8 to 8.0 log10 CFU/ml but free J9 cells reduced from 11.6 to 0.890 log10 CFU/ml in simulated intestinal juice after 2 h incubation. The microencapsulation of L. plantarum J9 with alginate proves effective in delivering viable bacterial cells at required levels. Probiotic with antioxidant activity and antagonistic properties against food-borne pathogens is reported for the first time from jangri batter. The sodium alginate microencapsulation allows viable cells to reach a beneficial level, and hence this study aids in developing new probiotic products.