Abstract: Low-density microcellular foam having a cell size of not greater than 2 .mu.m and method of making by dissolving cellulose acetate in an acetone-based solvent, gelling the solution in a water bath maintained at 0-10.degree. C for a selected period of time to allow impurities to diffuse out, freezing the gel, and then freeze-drying wherein water and solvents sublime and the gel structure solidifies into low-density microcellular foam. The foam has a density of 0.065 to 0.6.times.10.sup.3 kg/m.sup.3 and cell size of about 0.3 to 2 .mu.m. The small cell size foam is particularly adaptable for encapsulation of laser targets.