Marigold flower (Tagetes patula L.) is a very good source of carotenoid mainly lutein. The marigold flowers of three varieties (orange, yellow and red) are utilized to extract the lutein present in It by using various solvents like hexane, acetone, petroleum ether and methanol. Among these solvents methanol showed the highest extractability (52.51%). Among the various marigold, orange variety content the maximum amount of lutein of 154.96 mg per gram of extract. The fatty acid composition of the ester fraction was determined and saturated fatty acid content was maximum (about 75%) and unsaturated fatty acid was about 25%. The lutein ester was also reacted with capric acid (C10) in presence of M. miehei immobilized lipase and about 17.5% C10 fatty acid was incorporated to produce modified lutein for application in various functional foods.