Abstract Insects and microbes can cause disease and corrode materiel deployed in humid environments. Materials with multifunctional properties are highly desirable to the Army to create textile products that would inherently mitigate these issues and decrease Soldier load. Microcapsules (MCs) that encapsulate active compounds such as insect repellents are a potential platform to accomplish this. MCs that exhibit antibacterial and antifungal properties were prepared using an antimicrobial polymer, PHMB, as the shell, and the encapsulation of an insect repellent, picaridin, is reported. MCs are spherical, uniform, and demonstrate a positive zeta potential. FTIR analysis confirms the presence of both active components. MCs were studied for storage stability and their ability to impart functionality to a military relevant textile. Microscopy images demonstrate that MCs remain stable when stored in diH2O for at least six months. Antibacterial activity is observed for MC concentrations across two orders of magnitude in solution. MCs were adsorbed onto a 50:50 nylon:cotton blend (NyCo) as a model for functionalized materiel. GC data indicates that picaridin loading levels are more than ten times the required dose for deterring mosquitoes and both antibacterial and antifungal properties are exhibited. Treated fabric is resistant to fungal growth throughout a four week culture period. A four week storage study demonstrates no discernible loss in picaridin content, and NyCo swatches sustain at least a three log reduction in bacteria growth for all time points. The findings detailed in the following report suggest that these PHMB-based MCs could be used to functionalize materials against microbial organisms and mosquitoes, and are robust enough to endure storage in their crude form and as a coating.