The wood treating composition in accordance with the present invention has a micro-encapsulating mixture of porous particles imbued with a plurality of essential oils in an epoxy polymer shell mixed in a wood coating composition containing an anionic asphalt emulsion which can release essential oil anions to form a wood preserving composition for treating and preserving wood. The process for the treatment of wood to protect the wood from decay organisms and wood destroying insects uses the composition in the treatment of wood.