Biopolymer microgels have considerable potential for their ability to encapsulate, protect, and release bioactive components. Biopolymer microgels are small particles (typically 100nm to 1000μm) whose interior consists of a three-dimensional network of cross-linked biopolymer molecules that traps a considerable amount of solvent. This type of particle is also sometimes referred to as a nanogel, hydrogel bead, biopolymer particles, or microsphere. Biopolymer microgels are typically prepared using a two-step process involving particle formation and particle gelation. This article reviews the major constituents and fabrication methods that can be used to prepare microgels, highlighting their advantages and disadvantages. It then provides an overview of the most important characteristics of microgel particles (such as size, shape, structure, composition, and electrical properties), and describes how these parameters can be manipulated to control the physicochemical properties and functional attributes of microgel suspensions (such as appearance, stability, rheology, and release profiles). Finally, recent examples of the utilization of biopolymer microgels to encapsulate, protect, or release bioactive agents, such as pharmaceuticals, nutraceuticals, enzymes, flavors, and probiotics is given.