E-paper display has become an important forefront display technology field, because it has the advantages of real time updating like electronic display device, energy saving and healthy for human like traditional paper. E-paper based on the electrophoretic principle of nanoparticles in microcapsules is the research focus of reflective display technology. In this paper, the electrophoretic display dispersion liquids were prepared by that nano-titanium dioxide and manganese ferrite black spinel particles were dispersed in Isopar L, and the microcapsules were prepared by the through complex coacervation reaction on the surface of the dispersion droplets with gelatin and arabic gum used as shell materials. The microcapsules with the high strength and monodispersity are obtained under the optimized conditions in the dispersion system composed of 5.0 g electrophoretic liquids, 100 mL gelatin-arabic gum solution and 0.2 g sodium dodecyl sulfate with an initial gelatin solution pH = 7. The reaction is carried out after the pH value of the dispersion system is adjusted to 4.7 after maintaining dispersion for 20 min, then the cross-linking reaction is operated through adding a moderate amount of glutaraldehyde into the system under the ice bath. The microcapsules have an average shell thickness of 283 nm and can maintain a good shape after drying at 80 ℃ for 30 min. The yield of microcapsules is 73%, of which 30-50 μm products for 47%. The prototype display device was prepared by coating a mixture of microcapsules and polyvinyl alcohol in a ratio of 15:1 (w/w), as well as glycerin as the plasticizer on the PET-ITO substrate, and the device exhibits that the white and black state is 17.9% and 3.5%, reflectivity, and a response time of 570.5 ms under a ±25 V electric field.