The encapsulation of single cells has emerged as a promising field in recent years, owing to its potential applications in cell‐based therapeutics, bioprinting, in vitro cell culture, high‐throughput screening, and diagnostics. Single‐cell units offer several advantages, including compatibility with standard imaging techniques, superior diffusion rates, and lower material‐to‐cell volume ratios. They also serve as effective carriers for targeted drug delivery, allowing precise administration of therapeutics in cell‐mediated quantities. Moreover, single‐cell units exhibit improved circulation potential throughout the vasculature, with a reduced likelihood of entrapment compared to multicell strategies. However, the production of single‐cell units from random dispersion of cells follows the Poisson distribution, requiring the separation of empty and multicell units from single‐cell ones. Various methods have been developed to address this challenge; nevertheless, the majority of these strategies are either expensive or time‐consuming. This review provides an in‐depth analysis of the advantages and limitations of single‐cell units and their applications, as well as a comprehensive overview of the most used techniques for single‐cell encapsulation and sorting strategies.