In this work, ammonium polyphosphate (APP) was microencapsulated by UV‐curable epoxy acrylate (EA) resin. The resulting novel EA‐microencapsulated APP (EA‐APP) was characterized by Fourier transform infrared spectra, X‐ray photoelectron spectroscopy, X‐ray diffraction, scanning electron microscopy, granulometry, and thermogravimetric (TG) analysis. EA‐APP was used to flame retard polypropylene (PP). The water solubility of EA‐APP and the water resistance of PP/EA‐APP systems were investigated. The thermal stability and combustion behaviors of PP/EA‐APP composites were studied through TG and cone calorimeter (CC) tests, respectively. The water resistance test showed that the EA shell could significantly improve the water resistance of PP/APP. TG data illustrated that the char residue of EA‐APP greatly increased by 149% compared with uncoated APP, and the thermal stability of PP/EA‐APP composite was improved because of the microencapsulation of APP, with an increment of 248% for the char residue compared with PP/APP. CC test results indicated that the peak value of heat release rate, the total heat release, and the peak of smoke production rate of PP/EA‐APP decreased in comparison with PP/APP. The mechanism for the improvement of flame retardancy in CC test was discussed based on the experimental results. EA resin containing a large number of hydroxyl groups might promote the dehydration reaction in EA‐APP, which facilitated the formation of char residue and the stabilization of APP. Consequently, the flame‐retardant efficiency for APP was improved because of the presence of EA shell. Copyright © 2014 John Wiley & Sons, Ltd.