A microcapsule encapsulating a disperse system is produced by preparing a liquid organic dispersion containing a resin whose acid group has been neutralized, a colored particle, and an organic solvent; dispersing the liquid organic dispersion in an aqueous medium to produce a capsule particle in the aqueous medium, the capsule particle comprising a disperse system in which the colored particle is dispersed in the organic solvent, and a wall encapsulating the disperse system; and separating the capsule particle from the aqueous medium for dryness. The liquid organic dispersion may comprise, as an organic solvent, a hydrophobic organic solvent and a polar solvent dissolving the resin constituting the wall and being miscible to the aqueous medium. The wall of the capsule particle may be crosslinked or cured with a crosslinking agent. The microcapsule is utilized for an image display device in which the colored particle is electrophoretically movable in the oil phase by a potential difference. The present invention provides a microcapsule encapsulating a core material in which a colored particle is dispersed in an oil phase and having a uniform particle size without an emulsifying and dispersing agent.