C.I. disperse dye blue 60 was encapsulated with poly(styrenemaleic acid) by phase separation method and followed by the preparation of encapsulated disperse dye dispersion. Experimental results showed that sodium hydroxide and ammonia provided the dispersion the smaller particle size as compared with other additives. An optimal process was attained when mass ratio of NaOH to poly(styrene-maleic acid) was about 0.5, mass ratio of SDBS or OP-10 to encapsulated disperse dye was about 15% and dispersed with bead mill or ultrasonic machine. The encapsulated C.I. disperse dye blue 60 dispersion had narrow particle size distribution and excellent stability to centrifugal force, freeze-thaw treatmen. The rheological behavior of the dispersion was close to Newtonian fluid.