There is interest in replacing inorganic fillers in paper, coatings and plastics with renewable organic fillers to improve the economics, performance and environmental aspects of such products. Starch microcellular foam (SMCF) particles are promising materials in this regard. This research was undertaken to produce SMCF particles and characterize their morphology, optical properties and interaction with water. SMCF particles were produced using corn starch; which was solubilized in water. The foam structure was created by precipitating the starch using ethanol in a solvent exchange technique. The starch was also reacted with alkyl ketene dimer (AKD) wax at different levels in order to understand if the AKD could impart water resistance to the particles. Two methods were used to incorporate AKD: (1) the AKD was coated onto foam particles after foam formation, and (2) the AKD was blended with the starch before foam particle formation. Hexane extraction was used to purify a portion of each of the samples to determine if unreacted AKD existed with the starch matrix. Particles with porous structure and high brightness were developed for all combinations of starch and AKD. The brightness of the particles was significantly higher than that of the uncooked starch, presumably due to the development of a porous structure. For the AKD coated particles a minimum amount of AKD charged was needed to develop a high contact angle, low solubility, and low water retention value, higher levels of AKD in AKD coated particles did not further alter these properties. This indicates that the changes in properties with AKD level with coated particles is a surface phenomena. Starch AKD blends did not show any increased resistance to water relative to the particles with no AKD blended. This is due to the ethanol used in the precipitation process extracting the AKD, which was confirmed by elemental analysis. The particles, even with the 10% AKD coated or blended, lost their porous structure upon rewetting. Further work needs to be performed to more effectively hydrophobize the starch foams with AKD.