Microspheres of poly(vinyl acetate)/poly(vinyl alcohol)/disperse dye composite were prepared through suspension polymerization followed by the heterogeneous saponification. The effects of disperse dye on the rate of polymerization and saponification of poly(vinyl acetate) were studied. It was found that the rate of polymerization of poly(vinyl acetate) decreased when the concentration of the disperse dye increased. Also, the rates of poly(vinyl acetate) saponification decreased dramatically by the addition of disperse dye. The presence of disperse dye has almost no effect on the microsphere morphology.