Disclosed is a prepackaged smokable material capsule, comprising a container having an internal volume that allows a user to place a packaged amount of shisha or similar tobacco product into a hookah bowl without physical contact therewith. The capsule has a removable seal, an inlet, outlet and an internal agitator means within the capsule. The seal removably covers its upper inlet and lower outlet prior to use. Once removed, the inlet and outlet are preferably pre-perforated, or alternatively may then be perforated by a user, prior to a layer of coals be placed thereonto for burning the capsule contents and allowing smoke to be drawn therefrom. The imbedded agitator provides a means to control the density of the capsule contents and prevent clumping to ensure free flowing passage of air therethrough. Also disclosed is a capsule retainment system comprising a hookah bowl and capsule clamp.