The present disclosure relates to aqueous compositions for use in the manufacture of capsule shells and capsules with a functional polymer dispersion. The present disclosure relates to aqueous compositions for use in the manufacture of capsule shells endowed with controlled release properties. The present disclosure also relates to aqueous compositions for use in the manufacture of capsule shells and capsules endowed with moisture barrier properties. The present disclosure also relates to methods of manufacturing the capsule shell and capsules, and to capsule shells and capsules obtained therewith.