Phenol–formaldehyde microcapsules with linseed oil as an active agent were produced by applying in situ polymerization method. The anticorrosion and self‐healing efficiency of the synthesized materials were studied. Characteristics of these synthesized capsules were studied by Fourier transform infrared spectroscopy, and surface morphology was analyzed by using scanning electron microscope. Controllable particle size was estimated at different rpm of stirrer and particle size was checked under microscope and also by using particle size analyzer. The anticorrosion performance of encapsulated microcapsules coated with epoxy resin was carried out in 5% NaCl aqueous solution. The effectiveness of linseed oil filled microcapsules was investigated for healing the cracks generated in paint films or coatings. It was found that the cracks were successfully healed when linseed oil was released from ruptured microcapsules. Further, linseed oil‐healed area was found to prevent effectively the corrosion of the substrate in immersion studies. © 2010 Wiley Periodicals, Inc. J Appl Polym Sci, 2010