As the demand for natural antioxidant increases with the increasing of consumer health awareness towards the hazard effect of synthetic antioxidants, there is a considerable interest in exploring new sources of natural compounds like carotenoids. Carotenoids were extracted from yellow pepper and identified by High Performance Liquid Chromatography (HPLC). Results revealed that, violaxanthin was the predominant carotenoids identified  in yellow pepper extract followed by cryptoxanthin and lutein. 100, 200, 300 and 400 ppm of extracted carotenoids were tested for their efficiency in retarding the oxidative rancidity by Randmat method and their capability to stand for the destructive effects of heating process at 180±10°C for 5 hr/day for consecutively 5 days compared with the most common used synthetic antioxidant; BHT. Physicochemical characteristics of heated oils were monitored throughout heating process and results showed the high efficiency of the extracted carotenoids as antioxidant.