This paper presents a flip-chip based packaging technique for encapsulating MEMS electrostatic actuators for biomedical applications. High-performance electrostatic inchworm actuators are used to demonstrate the packaging technique. A wall structure is put around the actuator surrounding it completely but leaving a small clearance where the actuator shuttle can extend off the edge of the chip. A cap chip is fabricated separately, and flip-chipped onto the actuator. Au-Au thermal bonding technique is used to fix the cap. Finally, rendering the surfaces of the clearance hydrophobic prevents the water ingress when the actuator operates in water.