Vigorous development of electric vehicles is one way to achieve global carbon reduction goals. However, fires caused by thermal runaway of the power battery has seriously hindered large-scale development. Adding thermal runaway retardants (TRRs) to electrolytes is an effective way to improve battery safety, but it often reduces electrochemical performance. Therefore, it is difficult to apply in practice. TRR encapsulation is inspired by the core-shell structures such as cells, seeds, eggs, and fruits in nature. In these natural products, the shell isolates the core from the outside, and has to break as needed to expose the core, such as in seed germination, chicken hatching, etc. Similarly, TRR encapsulation avoids direct contact between the TRR and the electrolyte, so it does not affect the electrochemical performance of the battery during normal operation. When lithium-ion battery (LIB) thermal runaway occurs, the capsules release TRRs to slow down and even prevent further thermal runaway. This review aims to summarize the fundamentals of bioinspired TRR capsules and highlight recent key progress in LIBs with TRR capsules to improve LIB safety. It is anticipated that this review will inspire further improvement in battery safety, especially for emerging LIBs with high-electrochemical performance.