Polycaprolactone (PCL)-blended gelatin microspheres were prepared in the size ranges of 5–20 μm as well as 70–340 μm and modified through different compositions of PCL to gelatin in the oil-in-water emulsion solvent evaporation method. The formation of the polymer particles and particle morphology, stability, crystallinity, and thermal behavior of the polymer blends were studied. The changes in physiochemical properties of the blends were also studied with the addition of very less amount of polyvinylpyrrolidone (PVP), as it enhances the particle size distribution of microspheres as well as the surface morphology. Differential scanning calorimetry analysis shows the shifting of exothermic peak in the PCL/gelatin blend, and the PCL/gelatin blend stabilized by PVP results in the decrease in crystallinity. PCL-blended gelatin microspheres were smooth with definite shape and fine dispersibility with the increased concentration of gelatin to the polymer while lower concentration of the gelatin caused agglomeration. Optimization of the gelatin and PVP ratio to the polymer matrix results in large-size spherical stable microparticles. The stabilizing ability of microsphere decreases with the increased concentration of PCL during the solvent evaporation method. The addition of PVP to the PCL/gelatin blend enhanced the particle size distribution of microspheres as well as the surface morphology.