Polyester-encapsulated wax emulsions were investigated in the synthesis of polyester CPT to achieve a toner with complete incorporation of wax. The toner provided not only low-temperature fusing, but also improved durability, storage stability, and reduced contamination of print engine components. Polyester-encapsulated paraffin wax emulsions were prepared by phase-inversion emulsification with MEK as the solvent. To achieve good compatibility between the polyester resin and wax, the resin hydrophobicity was increased by grafting of hydrophobic moieties, including alkenyl succinic anhydride and styrene acrylate segments. With these resins, however, there was wax bleeding and separation of wax from the polyester emulsion. After evaluation of several resins, we found the following key conditions to achieve polyester emulsions with encapsulated wax. Firstly, the polyester was grafted with styrene acrylate segments containing long alkyl chain monomer such as stearyl methacrylate. Secondly, the wax was added internally to the hybrid polyester resin during resin synthesis. By using a resin produced under these conditions, the wax and polyester were emulsified with complete encapsulation of the wax, as confirmed by TEM. An EA toner was prepared from this emulsion and no wax was observed on toner surfaces by SEM. This means the wax stayed completely encapsulated even during coalescence, which was at a temperature above the wax melting point. In performance testing of the toner, the durability, storage stability and machine contamination levels were improved dramatically.