Abstract A straightforward microfluidic approach has been developed to fabricate the monodisperse thermo‐responsive self‐bursting poly(N‐isopropylacrylamide) (PNIPAM) microcapsules for the rapid on‐demand release of liposoluble drugs. The PNIPAM microcapsules possess excellent structural integrity with a dense shell and spacious cavity, providing ample space for encapsulating liposoluble matters. The swollen hydrogel shells effectively prevent drugs leakage and contamination below the volume phase transition temperature (VPTT), while the shrunken hydrogel shells enable drugs to release from microcapsules above the VPTT. The microcapsules demonstrate rapid thermo‐responsiveness, with drug release occurring within 4–6 minutes and subsequent swelling taking place within 2–3 minutes. The PNIPAM microcapsules exhibit a reversible and repetitive swelling/shrinking response to temperature changes. The thermo‐responsive self‐bursting PNIPAM microcapsules exhibit great potential as microcarriers for encapsulating, storing, and rapidly releasing liposoluble substances such as drugs, fluorescent dyes, corrosion inhibitors, and other chemical ingredients. The simple, controllable and reproducible microfluidic approach presented here provides valuable guidance for the design and fabrication of monodisperse PNIPAM microcapsules.