Microencapsulation is a technique of enclosing a core material into a polymeric membrane such that the encapsulate may be released over a period of time by diffusion or spontaneously on collapsing the wall by a sudden pressure. Besides being used in the dyes, foodstuffs, and chemical industries, such a technique has also found applications in biomedicine for prolonged drug delivery. The present work discusses the possible use of cellulose acetate as an encapsulating material giving microcapsules for sustained drug delivery. The conditions of formation of such capsules containing testosterone as the drug, and its subsequent release from depots, are described. Scanning electron micrographs of these show formation of good, nearly spherical capsules in the range of 5–100 μm. The release of testosterone from the microcapsules sustains up to 35 d. Possible use of this system in medical applications is discussed.