The microcapsules of amoxicillin using stearyl alcohol and polyethyleneglycol 8000 (PEG 8000) were prepared by a emulsion melted-cooled process in water phase. The size distribution, dissolution test, observation with SEM and in vivo test were investigated. The microcapsules obtained were spherical, uniform and free flowing particles. The release of drug from microcapsule was increased in proportional to the content of PEG 8000. As the PEG 8000 content increased, the particle size of microcapsule was decreased. Sanning electron micrograph study revealed that microcapsules had comparatively rough surfaces as drug content was increased. The $AUC_{0-12}$ after administration of amoxicillin microcapsules was more increased 40% as compared with the AUC after administration of amoxicillin powder in rabbits.