Biocompatible polymeric microcapsules encapsulated Fe 3 O 4 nanoparticles were fabricated by double emulsion solvent evaporation method. Magnetic nanoparticles were synthesized by coprecipitation of iron oxide. scanning electron microscopy, transmission electron microscope, fourier transform infrared spectroscopy, X-ray diffraction spectroscopy, and vibrating sample magnetometer were used to determine the morphology, structure, crystallinity, and saturation magnetization of the microcapsules, respectively. The results indicate that the composite microcapsules have nitrogen gas in the core, Fe 3 O 4 in the internal cavity with mean diameter of 3.6 lm. Thus, the alcohol as additive was applied to control the average size and size distribution of the microcapsules. Laser particle analyzer measurements indicate that the average size and size distribution decrease with the increasing of alcohol concentration, additionally the size and size distribution increase at higher alcohol concentration. Moreover, the prepared magnetic microcapsules with the coating of polymer have superparamagnetic behavior. Furthermore, the size controlled polymeric composite microcapsules have potential to act as ultrasound contrast agents and magnetic triggered drug delivery system.