Zeolite-based capsule catalysts have exhibited significant results in terms of catalytic activity and product selectivity in Fisher-Tropsch synthesis. Herein, we synthesized a ZSM-5 supported Co based microcapsule catalyst encapsulated by microporous silicalite-1 shell via hydrothermal synthesis process. Synthesized microcapsule catalyst has a uniform microporous structure with an additional stay zone for both reactants as well as product inside its channels and showed significantly high CO conversion rate (68.9%) and gasoline range hydrocarbon selectivity (74.7%) with a low CO2 and CH4 selectivity (2.8% and 8.7%, respectively). This microcapsule catalyst may consider to be used on commercial scale because of its facile preparation method and promising performance.