Propranolol hydrochloride was microencapsulated with ethylcellulose by means of phase separation from cyclohexane. The surface of the microcapsules examined using scanning electron microscope was porous. The dissolution rate of drug from microcapsules decreased as the weight ratio of propranolol hydrochloride to ethylcellulose decreased and as the size of microcapsules increased. The dissolution rate of drug from microcapsules decreased as the viscosity of ethylcellulose and pH of dissolution medium decreased.