Abstract To maintain the biological activities of sandalwood essential oil (SEO), antibacterial microcapsules were prepared through the encapsulation of SEO with melamine formaldehyde (MF) resin and β‐cyclodextrin (β‐CD). The micromorphology, chemical structure, and thermal stability of MF and β‐CD microcapsules were characterized through scanning electron microscopy, Fourier‐transform infrared spectroscopy, and thermogravimetric analysis. The results were compared to highlight the differences between the microcapsules. Additionally, the changes in the aroma components of the essential oil during the microencapsulation process were analyzed. The volatile organic compounds (VOCs) and their relative contents retained in SEO throughout the microencapsulation process were examined. VOCs in both essential oil and essential oil microcapsules were identified via headspace‐solid phase microextraction combined with gas chromatography‐mass spectrometry. The results revealed that β‐santalol and α‐santalol were the primary VOCs in SEO. Even after microencapsulation, SEO successfully retained its characteristic VOCs. Additionally, the antibacterial properties of essential oil microcapsules were evaluated using the plate coating counting method. These results confirmed that microencapsulated SEO maintained significant antibacterial activity against Escherichia coli and Staphylococcus aureus . This study provides valuable theoretical insights to support future research on the release behavior of SEO microcapsules.