An encapsulated fastener includes a nut having a face with a concave gap adapted to receive a bolt. The nut is encapsulated by an encapsulation including an extension, which includes a tube adapted for receiving a portion of the bolt and a flange adapted for engaging a face of the nut. The encapsulation extension is placed on the nut in an overmolding tool, wherein an encapsulation base is injection molded over a portion of the encapsulation extension. The encapsulation base encapsulates the nut and extends into the nut concave gap forming a base foot and washer protrusion. The nut is encapsulated except for its bore which is sealed off during the overmolding process by a spring-mounted mandrel. Alternative embodiments of the invention include tubes with different configurations for contacting the bolt whereby the tube or cylinder is reinforced. A method and tooling for manufacturing the encapsulated fastener are also provided.