We propose an optically transparent nano-encapsulated IPS TFT-LCD, it shows features as follows: (1) a single-substrate fabrication IPS mode by a simple coating method, and (2) a high-performance of IPS mode with optically-isotropic nature in the voltage-off state. So that, the nano-encapsulated IPS TFT-LCDs have a potential for the market of current LCD products and future flexible LCD applications.