Microencapsulation is the process of creating small particles consisting of a core containing one or more materials surrounded by a barrier layer. This process has become the basis of the carbonless copy paper industry and is important in other areas such as pharmaceuticals and flavorings. This chapter addresses the potential for the application of microencapsulation in the agricultural chemical industry. Microencapsulation can produce formulations with many desirable attributes. These include reduced solvent usage, reduced acute toxicity, modified biological activity, reduced degradation of unstable active ingredients, reduced volatility, reduced leaching, and protection of the active ingredients from other incompatible formulation components. The spray encapsulation methods are potentially useful, but have so far seen only limited application to agricultural products. They have the advantage of producing dry capsules that can be incorporated into nonaqueous systems and that a wide range of active ingredients and coating materials are compatible with the technology.