Abstract: An encapsulated gel breast prosthesis and method of manufacturing therefor is provided wherein a nipple/areola member and gelled breast body are disposed within an inner skin and outer skin which define the exterior shape of the breast prosthesis. The nipple/areola member has a shape, color and hardness simulating the natural shape, color and hardness of a human breast. The encapsulated gel breast prosthesis is fabricated by forming an outer skin and an inner skin. The outer skin is shaped to simulate the natural contour of a woman's breast and includes a region corresponding to the nipple and areola of the breast. A nipple/areola member having a shape, color and hardness, which simulates the natural shape, color and hardness of a woman's nipple and areola is disposed between the outer and inner skins which are then sealed together along their peripheries. This forms a capsule with the nipple/areola member enclosed therein.