A METHOD FOR PREPARATION of CHITOSAN-GLUTERALDEHYDE BASED BIOINSECTICIDAL EMULSION FORMULATION TO CONTROL PESTS� The present invention relates to a method for preparation of a chitosan-gluteraldehyde based bio-insecticidal emulsion formulation comprising Bt spore crystals as entomopathogenic substances with the extended shelf life and bio-efficacy, to provide cost effective and biodegradable insecticide with prolonged insecticidal activity and persistency under the extreme exposure to UV radiation, wherein concentration of chitosan and gluteraldehyde has been optimized in order to achieve optimum encapsulation efficiency as well as diameter of microcapsules has been optimized for the easy engulfment by the larvae, hence providing a bio-insecticidal emulsion formulation with bio-insecticidal activity for the prevention of infestation of larvae to plants in order to reduce plant damage.