To obtain the microencapsulated electric ink with good display properties, the bare TiO2 nanoparticles were modified by stearic acid (SA), and the white encapsulated electric ink was prepared by complex coacervation using Gelatin/gum arabic (GA) as wall materials. The bare and modified TiO2 nanoparitcles were characterized by SEM. Moreover, the fiber-optic spectrometer was also used to measure the reflective properties of the two particles. It was shown that the aggregation phenomena can be greatly decreased by surface modification, and also that the reflective properties can be maintained by this method. Finally, the particles in microcapsules possessed reversible response to dc electric field, and the response time was ~150 ms.