Microencapsulation is a technology used to protect, preserve, and deliver active ingredients in various industries, including pharmaceuticals, cosmetics, and food. Polymeric materials are commonly used as microcapsule shells to control the release of active ingredients. However, current microcapsules face challenges such as leaching, non-biodegradability, and high energy costs. Recent advancements focus on sustainable microcapsule designs that are efficient, safe, and environmentally friendly. This review discusses current challenges in microcapsule design and fabrication, emphasizing sustainable approaches and biodegradability. It highlights recent promising designs that address these challenges, including pH and temperature-responsive microcapsules, cross-linked polymeric shells, and inorganic shells for drug delivery. The review also addresses the need for biodegradable microcapsules in response to EU regulations on microplastics and the importance of energy-efficient manufacturing. The article evaluates the effectiveness of various methods for assessing microcapsule biodegradability and discusses the impact of shell thickness on release properties. It also explores the use of alternative cross-linking agents and inorganic materials to improve microcapsule performance and sustainability. The review concludes that while significant progress has been made, there is still a need for further research to develop microcapsules that meet current design requirements and regulatory standards.Microencapsulation is a technology used to protect, preserve, and deliver active ingredients in various industries, including pharmaceuticals, cosmetics, and food. Polymeric materials are commonly used as microcapsule shells to control the release of active ingredients. However, current microcapsules face challenges such as leaching, non-biodegradability, and high energy costs. Recent advancements focus on sustainable microcapsule designs that are efficient, safe, and environmentally friendly. This review discusses current challenges in microcapsule design and fabrication, emphasizing sustainable approaches and biodegradability. It highlights recent promising designs that address these challenges, including pH and temperature-responsive microcapsules, cross-linked polymeric shells, and inorganic shells for drug delivery. The review also addresses the need for biodegradable microcapsules in response to EU regulations on microplastics and the importance of energy-efficient manufacturing. The article evaluates the effectiveness of various methods for assessing microcapsule biodegradability and discusses the impact of shell thickness on release properties. It also explores the use of alternative cross-linking agents and inorganic materials to improve microcapsule performance and sustainability. The review concludes that while significant progress has been made, there is still a need for further research to develop microcapsules that meet current design requirements and regulatory standards.