The internal cracks, initiated by continuous stress on composite structures, pose a significant challenge due to the difficulty of detection and repair, especially in remote locations. Self-healing composites offer a promising solution by autonomously repairing these cracks and preventing catastrophic failure. This research investigates the development and characterization of such composites. The microcapsules loaded with healing agents were fabricated using a two-step encapsulation process and characterized for their internal and external morphology, as well as their performance. These microcapsules, constituting 10 wt.% of the composite material, were incorporated into the fabrication of self-healing composites alongside glass fibers and epoxy resin. The self-healing composite exhibited a remarkable 42% improvement in impact resistance after undergoing simulated damage and a subsequent healing cycle. While the control composite boasted a higher initial flexural strength of 110 MPa, the self-healing composite demonstrated superior post-healing performance in both tensile and impact loading. It achieved a 17% recovery in tensile strength compared to its state after damage and a 31% increase in impact energy absorption compared to the undamaged control composite. These results highlight the effectiveness of the self-healing mechanism in restoring the mechanical properties of composite. These findings highlight the potential of self-healing composites in applications demanding extended service life and autonomous crack repair, particularly in scenarios where early damage detection and intervention are difficult.