A method of producing microcapsules having an electrophoretic particle dispersion encapsulated comprises the steps of: emulsifying and dispersing a hydrophobic dispersion having electrophoretic particles dispersed in a hydrophobic medium by using a high-speed rotating stirring apparatus wherein the circumferential speed at the end of a stirring part is 2 m/s to 90 m/s, and the distance (a) between the end of the stirring part and that immobile part of the stirring apparatus which is nearest to the end of the stirring part is 0 mm<(a)<20 mm; and forming microcapsules of the emulsified and dispersed hydrophobic dispersion under stirring with a stirring blade.