The idea of microencapsulating a solution of hemoglobin (Hb) to make a prototypal artificial red blood cell (RBC) has been around for decades. T.M.S. Chang discussed the possibility in the late 50s and early 60s. The ideal properties and characteristics of a transfusable suspension of microencapsulated Hb have been specified. Progress has been limited by three major obstacles: (i) selecting an acceptable microencapsulation material; (ii) developing a microencapsulation process that yields the desired size range, but avoids denaturation of Hb; and (iii) encapsulating sufficient Hb while maintaining an acceptable final viscosity. We have made considerable progress in all three fronts. The resulting microcapsules are called Neohemocytes.