Microencapsulation is the process of coating solid or liquid materials in a polymeric film. It has advantages like sustained drug release, masking taste/odor, and protecting unstable drugs. Common coating materials are water soluble/insoluble resins, waxes, and lipids. Microencapsulation techniques include air suspension, coacervation, spray drying, pan coating, solvent evaporation, and polymerization. The drug release kinetics depend on factors like coating thickness, porosity and permeability. Microcapsules are evaluated for characteristics, morphology, viscosity, density and in vitro drug release.