Essential oils (EOs) are complex mixtures of volatile compounds extracted from different parts of plants by different methods. There is a large diversity of these natural substances with varying properties that lead to their common use in several areas. The agrochemical, pharmaceutical, medical, food, and textile industry, as well as cosmetic and hygiene applications are some of the areas where EOs are widely included. To overcome the limitation of EOs being highly volatile and reactive, microencapsulation has become one of the preferred methods to retain and control these compounds. This review explores the techniques for extracting essential oils from aromatic plant matter. Microencapsulation strategies and the available technologies are also reviewed, along with an in-depth overview of the current research and application of microencapsulated EOs.