We designed and assembled a simulated human intestinal system (SHIS) consisting of a stomach and a small intestine. Each reactor vessel has several ports such as the input and output of medium, a sampler of liquid phase, a pH electrode, a pH control (acid and base), and a thermometer. The SHIS was kept at body temperature (37°C) by pumping water into the space between the jacket and the inside walls. The stomach chamber was initially filled with gas fluids and then digested for 2 hr. After the stomach digestion, the residuals was delivered from stomach chamber into the small intestine chamber by secreting intestinal fluid for 4 hr, followed by secretion of 0.3M NaHCO 3 , 0.1M NaHCO 3 , 4% bile salt, and 2% bile salt for 1, 3, 0.5, and 3.5 hrs, respectively. In order to prepare the alginate/chitosan capsule as a delivery system for bioactive agents, the microencapsulation system was assembled with a control unit, a electrical, a pneumatic systems, and a reaction vessel. After digestion of alginate capsules, the content of total sugar was 7.47% and 60.82% in the stomach and small intestine (simulated human intestinal system, SHIS), respectively. However, in case of alginate/chitosan capsule and alginate/chitosan capsule coated with polyacryl emulsion (alginate/chitosan-PAE), the total sugar content were 3.12 and 4.62% in the stomach model and 43.46 and 42.09% in the small intestine model, respectively. There were no difference on the degree of digestion in the alginate capsule and alginate/polyethylene glycol (alginate/PEG) capsule prepared with 0.1-0.3% of PEG in the stomach model. As a result, the alginate matrix remained in a shrunken state due to conversion of sodium alginate into insoluble alginic acid, which acted as a barrier to chitosan microparticles. And it was effective for digesting by intestinal fluid and releasing of the sugar.