Science has created several technologies for eco-friendly textile manufacturing, such as microencapsulation. Microencapsulation is a cutting-edge technique that has been used to imbue fabrics with functional properties such as antibacterial activity, smell, mosquito repellency, UV protection, and thermoregulation. The volatile and non-volatile components can be microencapsulated inside a thin polymeric film, resulting in delayed chemical release and long-term functional impact. Microencapsulation is a good technique for protecting core chemicals against moisture, light, alkalinity, evaporation, and oxygen reactionsIf functional agents were encapsulated, the fabric's functioning may be anticipated to last longer. Colorants, enzymes, PCM, softeners, perfumes, flame retardants, insect repellents, water repellents, antimicrobials, and deodorants are some of the substances that may be found in microcapsules. Crosslinking agents are used to create a lasting binding between capsule-based compounds and textile materials, which gives resistance to washing. Commercial capsules are applied to fabric using acrylics or polyurethanes as the cross-linker at a drying temperature of approximately 100 C and thermo-fixation conditions of 110 to 130 C. This study focuses on the primary reasons for microencapsulation, the characteristics of microcapsules, microencapsulation technologies, and the use of microcapsules for functional textiles.