The application of natural compounds including green tea extract (GTE) in food preparation and pharmaceutical industries is limited. Encapsulation in nanoliposomes could be used as a delivery system to protect these compounds during processing and storage. In this study physicochemical characterization, total phenol content and antibacterial and antioxidant activity of green tea extract encapsulated in nanoliposomes were evaluated. GTE was encapsulated in liposomes by thin film layer method and reached to nanoscale with sonication. The antioxidant activity of nanoliposomal GTE was estimated by DPPH assay. The antibacterial activity of nanoliposomal GTE against Bacillus cereus (ATCC11778), Salmonella typhimurium 138 phage type 2, Escherichia coli O157: H7 and Listeria monocytogenes (ATCC19118) was determined using well diffusion technique. The mean diameter of nanoliposomes was about 44.7±1.9 nm and had 0.203±0.014 polydispersity index. Entrapment efficiency of nanoliposomal GTE under the optimum conditions was 97%. Antibacterial activity of GTE was significantly increased after encapsulation in nanoliposomes. The strongest antibacterial activity of nanoliposomal GTE was seen against L. monocytogenes with an inhibition zone of 16.2 mm while E. coli was the most resistance strain with an inhibition zone of 14 mm. Furthermore, the antioxidant activity of GTE was significantly increased after nanoliposome encapsulation since the IC50 value of nanoliposomal GTE was decreased to 1.78 mg/ml. Nanoencapsulation effectively enhanced beneficial properties of GTE including antimicrobial and antioxidant activities.