The present invention relates to a process for obtaining stabilized Lutein with about 95% yield from oleoresin at ambient temperature, said process comprising steps of dissolving cleaned oleoresin in alcohol to obtain dissolved Xanthophylls esters as clear solution on filtration, cleaning dissolved oleoresin comprising xanthophylls esters in ion-exchange resin, hydrolyzing the clear solution with base in presence of phase-transfer catalyst in alcohol medium, quenching the hydrolyzed solution in water maintaining acidic pH to obtain undissolved solids on filtration, dissolving the solids in ester to obtain ester layer on filtration, drying ester layer to obtain semi-solid residue, triturating the semi-solid residue in alcohol whereby obtaining lutein crystals of about 65% assay and an alcoholic fraction, distilling the alcoholic fraction to obtain non water-soluble fractions, and mixing the Lutein crystals with non water-soluble fractions to obtain a stable Lutein paste.

 
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