Nanofibrillated cellulose (NFC) from plant biomass is becoming popular, attributed to the protective encapsulation of bioactive compounds in Pickering emulsion, preventing degradation and stabilizing the emulsion. NFC, as a natural dietary fiber, is a prominent fat replacer, providing a quality enhancement to reduced-fat products. In this study, NFC Pickering emulsions were prepared at NFC concentrations of 0.2%, 0.4%, 0.6%, 0.8%, and 1% to encapsulate carotenoids. The NFC Pickering emulsions at NFC concentrations of 0.4%, 0.6%, 0.8%, and 1% were incorporated into margarine-like reduced fat (3%) spreads as the aqueous phase. Characterization of both NFC Pickering emulsion and the incorporated NFC Pickering emulsion, margarine-like reduced fat spreads, was conducted with mastersizer, rheometer, spectrophotometer, and texture analyzer. The particle size (73.67 ± 0.35 to 94.73 ± 2.21 nm), viscosity (138.36 ± 3.35 to 10545.00 ± 567.10 mPa s), and creaming stability (25% to 100% stable) of the NFC Pickering emulsions were increased significantly when increasing the NFC concentration, whereas the encapsulation efficiency was highest at NFC 0.4% and 0.6%. Although imitating the viscoelastic solid-like behavior of margarine was difficult, the NFC Pickering emulsion properties were still able to enhance hardness, slip melting point, and color of the reduced fat spreads compared to the full-fat margarine, especially at 0.6% of NFC. Overall, extensive performances of NFC can be seen in encapsulating carotenoids, especially at NFC concentrations of 0.4% and 0.6%, with the enhancement of Pickering emulsion stability while portraying futuristic possibilities as a fat replacer in margarine optimally at 0.6% of NFC concentration. PRACTICAL APPLICATION: Nanocellulose extracted from palm dried long fiber was utilized to encapsulate carotenoids and replace fats in margarine-like reduced fat (3%) spreads. Our study portrayed high encapsulation efficiency and successful fat replacement with promising stability performances. Hence, nanocellulose displayed extensive potential as encapsulating agents and fat replacers while providing quality and sustainability enhancements in reduced-fat food.