Olive leaf extract (OLE) contains high amounts of oleuropein and hydroxytyrosol. The antioxidant capacity of these polyphenols makes OLE a promising ingredient for functional food. OLE causes very strong bitterness perception and can therefore only be formulated in low concentrations. In this research, bitter detection and recognition thresholds of OLE-fortified fruit smoothies were determined by a trained sensory panel (n = 11). Masking of the OLE's bitter taste was investigated with addition of sodium cyclamate, sodium chloride, and sucrose by means of a standardized ranking method and a scale test. Detection (5.78 mg/100 g) and recognition thresholds (8.05 mg/100 g) of OLE polyphenols confirmed the low formulation limits when bitterness was not masked by other substances. At higher polyphenol levels of 20 mg/100 g, sodium cyclamate and sucrose were able to reduce bitter taste perception by 39.9% and 24.9%, respectively, whereas sodium chloride could not effectively mask bitterness. Practical Application: Development of functional food poses new challenges for the food industry. A major problem in this field is the high bitterness of natural polyphenol-containing extracts with potential health benefits. This research was conducted to understand the sensory impact of olive leaf extract (OLE), a novel food ingredient with very bitter taste. In product development, the data of this research can be considered for formulation limits and the general sensory quality of OLE-fortified food and beverages.