Recently, many studies have shown that propolis has diverse health beneficial effects such as anti-cancer, anti-bacterial, anti-inflammation, and anti-oxidant activities. Water-insolubility of propolis has made it extremely difficult in manufacturing health beneficial beverages containing propolis. In this study, the solubility of propolis was dramatically improved by entrapping with beta-cyclodextrin and the prebiotics effect of water-soluble propolis on the yogurt fermentation was investigated. Lactobacillus pentosus SC60 was selected as a starter for the yogurt fermentation due to its high DPPH radical scavenging activity. Low-fat milk which was supplemented with different concentrations of propolis (0.01, 0.05, 0.1, or 0.5% (w/v)) was fermented with L. pentosus SC60 for 30 h and the viable cell number, pH, and titratable acidity were checked. The rates of decrease in pH and increase in titratable acidity of yogurt after 12 h of fermentation were the highest when 0.5% (w/v) propolis were supplemented. Meanwhile pH and titratable acidity of yogurt without propolis reached 4.54 and 0.73%, respectively, most slowly after 30 hoffer mentation when compared with other yogurts supple mented with propolis. The viable cell number of L. pentosus SC60 in yogurt with 0.5% (w/v) propolis increased with highest rate and it exceeded 9 log CFU/mL at 8 h of fermentation, but that of yogurt with no propolis was only 8.54 log CFU/mL at 30 h of fermentation. This results showed that L. pentosus SC60 grew very well in the presence of water-soluble propolis and it is proposed that propolis acts as prebiotics