The invention provides a microcapsule containing dimethyl phthalate, mosquito repellent water and a preparation method thereof. The microcapsule disclosed by the invention comprises dimethyl phthalate, chitosan and gamma-polyglutamic acid. The dimethyl phthalate is coated by utilizing chitosan and polyglutamic acid and is separated from skin, so that irritation to skin is reduced, slow release of the mosquito repellent is realized, and then a mosquito repellent effect is lasting. The mosquito repellent water disclosed by the invention comprises the following main components: the microcapsule containing dimethyl phthalate, aloe extract, hyaluronic acid, polyethylene glycol, propylene glycol, rose hydrosol, water and the like, has the effects of moisturizing, resisting bacteria, diminishing inflammation, relieving itching and the like and is safe and non-toxic. The microcapsule is simple in preparation process, and the wall material has renewability and biodegradability and is non-irritating to skin. According to the mosquito repellent water disclosed by the invention, the dimethyl phthalate is separated from the skin by utilizing the microcapsule, so that bad reactions are reduced; and moreover, a slow release aim of the dimethyl phthalate is achieved, the concentration of the dimethyl phthalate in toning lotion can be reduced, and the effective mosquito repellent time is prolonged.