the present study demonstrates encapsulation of coriandrum sativum essential oil in chitosan nanoemulsion and its effectiveness against fungal infestation and fumonisin b1 (fb1)- and b2 (fb2)-mediated biodeterioration of stored rice samples. mycoflora analysis of different rice varieties revealed fungal occurrence and fusarium proliferatum-brc-r2 as the most toxigenic strain with highest fb1- and fb2-producing potentiality. gc-ms analysis of coriandrum sativum essential oil (ceo) revealed linalool as the major component. the ceo-loaded chitosan nanoemulsion (ne-ceo) was characterized by scanning electron microscopy, x-ray diffractometry, dynamic light scattering, and fourier transform infrared spectroscopy. the ne-ceo showed better antifungal and anti-fumonisin effectiveness as compared to unencapsulated ceo. the antifungal mechanism was associated with reduced ergosterol content, efflux of ions, proteins, nucleic acids, and destruction of plasma membrane integrity. the in silico interaction of linalool with fum 1 protein confirmed the molecular action of anti-fumonisin activity. additionally, the ne-ceo displayed improved antioxidant activity and promising antifungal and anti-fumonisin activity during in situ investigation in rice samples (gobindobhog variety) along with inhibition of the deterioration of carbohydrate, protein content, and lipid peroxidation without altering organoleptic properties and seed germination potentiality. overall, the investigation strengthens the potentiality of ne-ceo as a novel preservative of stored food commodities.