Today, microcapsule application to textile materials is a widely used for the production of functional textile products. Microcapsule application methods used in practice have some significant disadvantages. There is a need for innovative methods to eliminate or minimize these disadvantages. From this point of view, in this study, it was aimed to develop an alternative method based on integrating microcapsule particles into the open staple fiber bundle before the spun yarn formation on the classical ring spinning. It was thought that this application method could allow the incorporating microcapsules not only the fibers on the yarn surface but also to the surface of the fibers in the yarn structure. Microcapsule doped and undoped ring spun yarns having Ne 16 yarn count with knitted twist were produced from viscose fibers. Obtained ring spun yarns were subjected to winding and knitting processes in order to analyze the effect of friction on the microcapsule presence. SEM images taken from yarn and fabric samples were examined. Additionally, yarn properties were analyzed. In order to evaluate the performance of the alternative method, microcapsule dispersion at the same concentration was applied to the knitted fabrics using pad-dry-cure method, which was widely used for production of the functional textile products. Two types of microcapsule applied knitted fabric samples were washed several times and presence of microcapsules was evaluated with SEM images. Furthermore, thermal properties of the both types of application methods were compared by examining T-history curves. The findings indicated that the alternative method offers comparable yarn and thermal properties with environmentally friendly application as well as washable and durable to the friction effects occurring in industrial processes.