Preparation of microcapsules, which are containing various pigments embedded hybrid nanoparticles dispersed in the dielectric fluid has been performed to realized color e-Paper display system. Microcapsules containing pigment embedded hybrid nanoparticles suspensions as core materials were fabricated via in-situ polymerization using melamine-formaldehyde as the wall materials. To investigate the electrophoretic behavior of pigment embedded hybrid nanoparticles in the microcapsule, a simple electrophoretic display cell was fabricated and its performance was monitored in terms of the pigment nature and the property of hybrid nanoparticles.