Vertical cutoff wall has been employed for decades to control groundwater flow and subsurface contaminant transport. Environmental stress fluctuations induced by alternating dry and wet conditions impair the permeability and durability of the cutoff wall, leading to the dispersion of contaminants. The objective of this study is to incorporate self-healing microcapsules into existing geopolymer cutoff wall backfill (GCWB) to form self-healing geopolymer cutoff wall backfill (SHGCWB) that hold promise for better durability and performance. The in-situ polymerization method was used to develop single-walled and double-walled microcapsules. The microcapsules use sodium silicate as the healing agent encapsulated in single-walled polyurethane (PU) and double-walled polyurethane/melamine-formaldehyde (PU/MF) microcapsules. The effect of microcapsules on the unconfined compressive strength (UCS) and hydraulic conductivity of SHGCWB were elaborated. The durability and hydraulic conductivity variation of SHGCWB in dry-wet cycle was thoroughly investigated by Scanning Electron Microscopy (SEM) test for understanding the self-healing mechanism. The overall performance demonstrated the significant potential of the use microcapsules as a self-healing approach for cutoff walls.