Disclosed is a self-extinguishing power cable with microcapsules and a method for manufacturing the same. A method of manufacturing a self-extinguishing power cable with a microcapsule, the method includes applying a mixed solution of water-soluble adhesive, a magnetic powder and a swellable powder on one surface of a first nonwoven fabric; magnetically treating and drying the first nonwoven fabric; pressing one surface of a second nonwoven fabric on the one surface of the first nonwoven fabric to form a single nonwoven fabric; and forming the single nonwoven fabric into a neutral conductor water blocking layer of an electrical power cable to manufacture the electrical power cable, wherein the microcapsule is provided between the first nonwoven fabric and the second nonwoven fabric.