The modernization of traditional Chinese medicine is important to its survival and development. Nowadays, the development of traditional Chinese medicine faces many problems, for example: low bioavai- lability, smelly, side effects, drug-mixture taboos and so on. In this paper, Characters of microencapsulation technology and its applications in traditional Chinese medicine are introduced. With the development of micro- encapsulation technology and its further research in traditional Chinese medicine, it must be more important to contribute to traditional Chinese medicine modernization.