Cells microencapsulated in biocompatible semi-permeable poly- meric membranes are effective as cell delivery systems while protecting the host against immune responses. In this study, cell encapsulation membranes were prepared based on carrageenan and alginate, two natural cationic polymers. Different formulations/conditions were explored to optimize the microcapsules which were characterized with respect to their morphology, mechanical stability, and cytotoxicity. Spherical-shaped microcapsules were obtained from all the polymeric systems. The iota-carrageenan/sodium alginate microcapsules exhib- ited the best stability and permeability, and therefore, these were selected for the cell encapsulation. These capsules provided an environment that supported cell proliferation and have the potential for tissue engineering as well as other cell-based therapy applications.