To solve the problems of shear degradation and injection difficulties in conventional polymer flooding, the capsule polymer flooding for enhanced oil recovery (EOR) was proposed. The flow and oil displacement mechanisms of this technique were analyzed using multi-scale flow experiments and simulation technology. It is found that the capsule polymer flooding has the advantages of easy injection, shear resistance, controllable release in reservoir, and low adsorption retention, and it is highly capable of long-distance migration to enable viscosity increase in deep reservoirs. The higher degree of viscosity increase by capsule polymer, the stronger the ability to suppress viscous fingering, resulting in a more uniform polymer front and a larger swept range. The release performance of capsule polymer is mainly sensitive to temperature. Higher temperatures result in faster viscosity increase by capsule polymer solution. The salinity has little impact on the rate of viscosity increase. The capsule polymer flooding is suitable for high-water-cut reservoirs for which conventional polymer flooding techniques are less effective, offshore reservoirs by polymer flooding in largely spaced wells, and medium to low permeability reservoirs where conventional polymers cannot be injected efficiently. Capsule polymer flooding should be customized specifically, with the capsule particle size and release time to be determined depending on target reservoir conditions to achieve the best displacement effect.