Abstract: A process is described for the enzyme catalyzed synthesis of polymeric microspheres from monomers such as ethylphenol, naphthols and hydroxypyrenes in reverse micelles in the presence of a detergent. Polymeric microspheres synthesized are porous with nonuniform densities. Polymers prepared from naphthols and hydroxypyrenes are fluorescent with electroluminescent properties. A number of materials such as enzymes, drugs and inorganic materials such as iron oxide and cadmium sulfide are encapsulated in the hollow polymeric microspheres synthesized. These encapsulations are carried out during or after the syntheses of the polymeric microspheres. Functional properties of the encapsulated materials such as enzyme, magnetic and nonlinear optical properties are demonstrated in the polymeric composites.