A microencapsulated catalyst is prepared by dissolving or dispersing a catalyst in a first phase (for example an organic phase), dispersing the first phase in a second, continuous phase (for example an aqueous phase) to form an emulsion, reacting one or more microcapsule wall-forming materials at the interface between the dispersed first phase and the continuous second phase to form a microcapsule polymer shell encapsulating the dispersed first phase core and optionally recovering the microcapsules from the continuous phase. The catalyst is preferably a transition metal catalyst and the encapsulated catalyst may be used for conventional catalysed reactions. The encapsulated catalyst may recovered from the reaction medium and re-cycled.