The objective of this work was to study the effect of incorporating a microencapsulated healing agent in an epoxy matrix and E-glass fiber reinforced composite. Microcapsules were prepared via oil-in-water emulsion polymerization method with dicyclopentadiene as core material and poly(urea-formaldehyde) (PUF) as shell material. The suitable formulation for the epoxy matrix was selected based on the study of the rheological and mechanical properties of various chemical systems. Different amounts of microcapsules were incorporated and the most appropriate processing method (mixing, curing and post-curing cycle) was evaluated. Furthermore, flexural and fracture tests were carried out and the distribution of the capsules as well as the interfacial adhesion with the epoxy matrix were studied. Finally, the processing of fiber reinforced composites, with and without microcapsules, was carried out by compression molding and the mechanical properties of the composites were studied (modulus and maximum flexural strain) from testing three-point bending. The resulting samples with 32 wt. % of fibers and matrices with no microcapsules were compared. Compression molding technique did not affect the integrity of the microcapsules inside the composites.