M ANY methods for eco-friendly textile processing have been developed by science, including enzymatic textile finishing, plasma technology, natural product finishing, and microencapsulation. Microencapsulation is an innovative technology that has been utilized to give textiles functional features including antibacterial activity, scent, mosquito repellency, UV protection, and thermoregulation. The volatile and non-volatile components can be contained inside a thin polymeric film in microencapsulation, resulting in a delayed release of the chemical and a long-lasting functional impact. This review study focuses on the primary causes for microencapsulation, key microencapsulation techniques, and applications of microencapsulated goods in many fields of science and technology.