In order to develop a thermostatic fabric using phase transition materials, octadecane-containing microcapsules were synthesized and the fabric finishing process was investigated. The optimum treatment conditions were proposed by evaluating the durability, hand, and physical properties of treated fabrics. The synthesis of microcapsules by interfacial polymerization method was confirmed through analyzing the structure of microcapsules using FT-IR. The core content and encapsulation efficiency were confirmed by DSC. The optimum treatment temperature and time combination to obtain the best thermal storage and release properties from microcapsule treated fabrics was 60 $^{circ}C$ and 8 min. Thermal properties of treated fabrics after laundering decreased. Bending and shear rigidities of treated fabrics increased, which meant the coated fabric became stiffer and harder to bend and shear. And mean deviation of surface roughness of treated fabrics increased. Koshi, Shari, and Hari of treated fabrics increased but Fukurami decreased as microcapsule concentration increased. The treated fabrics exhibited lower air permeability and water vapor permeability, and higher moisture regain compared with the untreated fabric.