This study investigated the effect of heat treatments on the pungency and aroma profiles of a spice oleoresin blend, and the emulsion stability with different surfactants, encapsulating agents, and homogenization mechanisms. Total pungency increased with heat until 120 °C and drastically reduced at 150 °C. Thermal processing induced aroma release, and 46 compounds were identified at 90 °C, predominantly comprising sesquiterpenes. Tween 80 dispersed the highest oleoresin mass (6.21 ± 0.31 mg/mL) and reported the maximum emulsion stability index. The oleoresin percentage significantly influenced the emulsion stability, with 1% oleoresin producing the most stable emulsion. High-pressure homogenization applied on gum Arabic resulted in a greater encapsulation efficiency, exceeding 86%, and the lowest creaming index (4.70 ± 0.06%), while Hi-Cap 100 produced the best flow properties. The findings provide insights into incorporating lipophilic spice oleoresin blends in aqueous food systems and understanding the release of flavor compounds during thermal food processing.