Microencapsulation is a relatively new technology that is used for protection, stabilization, and slow release of food ingredients. The encapsulating or wall materials used generally consist of starch, starch derivatives, proteins, gums, lipids, or any combination of them. Methods of encapsulation of food ingredients include spray-drying, freeze-drying, fluidized bed-coating, extrusion, cocrystallization, molecular inclusion, and coacervation. This paper reviews techniques for preparation of microencapsulated food ingredients and choices of coating material. Characterization of microcapsules, mechanisms of controlled release, and efficiency of protection/stabilization of encapsulated food ingredients are also presented.