To overcome the degradation of insulating properties caused by the water tree aging of cross-linked polyethylene (XLPE), a self-repairing material for XLPE based on a microcapsule system is proposed. Three-layer shell nucleus microcapsules/XLPE composites with different microcapsule doping content are prepared. The water tree aging experiments are carried out using the water-needle electrode method to analyze the ability of microcapsules to repair the damaged areas of water trees. The results show that, compared with the XLPE material without microcapsules, the electrical properties of composites decline significantly when the doping concentration of three-layer shell nucleus microcapsules is large. When the doping concentration is 1.0 wt%, the microcapsule/XLPE composite breakdown strength has no noticeable change, and the dielectric loss factor does not change significantly, the space charge density decreases, and the space charge properties have been improved considerably. When the water tree branch develops to the position where the microcapsules are located, the microcapsules will rupture and release their internal repair materials and catalysts and react with water to produce an organic silicone resin to fill the water tree cavity, which can achieve an excellent self-healing effect. In addition, the nano-SiO2 on the surface microcapsules can make the microcapsules and matrix better integrated, which avoids the microcapsule accumulation that tends to occur when incorporating microcapsules, thus improving the repair rate.