The purpose of the present investigation was to study the effect of Cinnamomum zeylanicum essential oil adding at two concentrations (0.02% and 0.04% v/w) on pH, lipid oxidation, microbial growth and sensory characteristics of chicken sausage stored at 4 °C for 21 days. The antioxidant activities were compared to that of a standard synthetic antioxidant; butylated hydroxyanisole (BHA). The results declared that the pH values were not differing between the BHA-formulated sausage samples and samples containing C. zeylanicum essential oil (p>0.05). Incorporation of C. zeylanicum essential oil retard lipid oxidation process at the end of storage (p < 0.05). The initial TBA value was 0.140±0.01 mg malonaldehyde/Kg sample. After 21 days of storage, it reached to 0.191±0.02 mg malonaldehyde/Kg sample in BHA-formulated samples (T1), 0.227±0.02 mg malonaldehyde/Kg sample in C. zeylanicum essential oil 0.02% samples (T2) and averaged 0.153±0.02 mg malonaldehyde/Kg sample in C. zeylanicum essential oil 0.04% samples (T3). All samples had lower TBARs values and adding C. zeylanicum essential oil decreased the lipid oxidation of samples. At storage day 21, sausage samples formulated with C. zeylanicum essential oil (T2 & T3) maintained lower APC (6.90±0.06 and 6.30±0.09 log10 CFU/g, respectively) than the MPL, while APC in control samples (T1) exceeded the limit of 7 log10 C-FU/g. Samples containing highest amount of C. zeylanicum essential oil (T3) had higher sensory score compared to control sample. The results suggest that C. zeylanicum essential oil, which might be seen more healthful than those of synthetic origin and through their combined antioxidant and antimicrobial effects, are potentially useful in preserving chicken sausage.