Microcapsule technology is a new technology with rapid development, and has been successfully applied in biomedicine, food, chemistry, and other fields for its several advantages, including accurate drug administration and controlled content release. Sodium alginate is a unique plant polysaccharide extracted from marine algae, and has been widely used as microcapsule coating materials owing to its good solubility, good film-forming and gelation performance. However, there are still some problems in the manufacture of sodium alginate microcapsules, such as imperfect formula and unstable preparation process, due to the properties of sodium alginate microcapsules being difficult to control and easily affected by base material, cross-linking agent, and process parameters. In order to solve the above problems, the properties of sodium alginate, such as ion exchangeability, pH susceptibility, gelling characteristics, and influencing factors in the preparation process of microcapsules were summarized in this review, and the application of sodium alginate microcapsules in encapsulating cells, drugs, and essential oil were discussed as well. It is pointed out that the future research direction should focus on improving the preparation process of microcapsules, clarifying the relationship between film-forming mechanism and mechanical properties of sodium alginate gel, enhancing the strength and toughness of sodium alginate microcapsules, and promoting the formulation research of sodium alginate with other polymer materials,thereby expanding the application range of sodium alginate microcapsules and accelerating the industrialization process of sodium alginate microcapsules.