In order to reduce the odor of leather and improve its application performances, this study used zein, artemisia argyi essence (AAE) and Pluronic F127 as raw materials to prepare the emulsion of zein microcapsules loading AAE (AAE@ZMs) by anti-solvent method. Then AAE@ZMs emulsion and casein modified by caprolactam (Ca-Cpl) were blended to fabricate composite emulsion and then finish the leather. The results show that zein interacts with F127, AAE and glutaral through chemical cross-linking and hydrogen bonding. Meanwhile, F127 and AAE can rearrange the amino acids in zein and cause fluorescence quenching. The average particle size of AAE@ZMs is about 298.6 nm and the microcapsules have good dispersibility and stability. The encapsulation rate and loading rate of AAE@ZMs can reach 73.2% and 5.8% respectively, and the cumulative release rate is about 83.1% after releasing for 120 h. When AAE@ZMs were applied to the leather coating, the release cycle of AAE in the coated leather sample is 6 weeks. Moreover, the coated leather samples not only show good inhibitory effect on staphylococcus aureus and escherichia coli, but also possess better mechanical behaviors than that of the pristine leather.