A microcapsule can be produced readily by: (a) pulverizing a solid pesticidal compound in terpineol, dihydroterpineol, terpinel acetate, dihydroterpinel acetate or a mixture thereof to yield a suspension; (b) mixing the suspension with water to prepare a liquid droplet; and (c) forming a resin coating around the liquid droplet. The microcapsule prepared in this manner can contain the major portion of the solid pesticidal compound therein.