In order to avoid the harm of capsule raw materials to the environment, degradable ethyl cellulose ether (EC) was selected as the wall material, and essential oil microcapsules were prepared by solvent evaporation. The results showed that the stirring rate had a great influence on the particle size and surface micropores of microcapsules. When the stirring rate was 1200 r/min and the mass of EC and essential oil were 1 g and 1.25 g respectively, the median particle size of the microcapsules was 70.8 μm. The embedding rate was 44.3%. Then, the prepared essential oil microcapsule was used to prepare the hygroscopic and breathable composite fabric through the wet coating process. It could be seen from the SEM that this method retained the original shape of the substrate. The flavor retention rate after 30 days of release was 39.2%. This was due to the fact that the mass fraction of Linalyl Acetate in the encapsulated essential oil increased by 27.09%, which prolonged the storage life of the essential oil. The microcapsules were uniformly and massively distributed on the surface of the stretch coated fabric, making the fragrance value as high as 382. The air permeability of the stretched and un-stretched composite fabrics was more than 600 mm/s, the fragrance retention rate was more than 35% after washing for 5 times, and the quality remains more than 96% after rubbed for 50 times. The preparation method of the composite is simple and can effectively improve the problem that the air permeability and fastness cannot be obtained at the same time.