Transplantation of endocrine cells, especially when protected from immune destruction, is an attractive alternative to whole organ transplantation. The current treatment for adrenal insufficiency whether congenital or acquired is hormone replacement, which is not considered fully physiological. In this study, we isolated porcine adrenal cortical cells by collagenase digestion. The cells were microencapsulated in alginate-polylysine-alginate membranes using electrostatic droplet generator. In vitro, ACTH stimulation of both free and microencapsulated adrenal cortical cells produced comparable cortisol response. It can be concluded that the microencapsulation process is not injurious to the adrenal cortical cells and that it does not hamper their secretory function.