Successful encapsulation of cells is of interest for a wide variety of biotechnological applications such as microbial fuel cells (MFCs), food systems, environmental remediation, fermentation reactors, and regenerative medicine. In this review paper, biohybrid materials comprised of encapsulated cells in electrospun polymer fibers are presented. Such bio-encapsulation allows for the protection of cells from harsh environments as well as the control of the physico-mechanical properties in the cell's immediate surroundings, i.e. the chemical structure and permeability of the matrix as well as its density. This review paper discusses the preparation methods of these "living materials" and their potential applications using examples of the encapsulation of bacterial cells in various electrospun fibers which can be monolithic, core-shell, or hollow. Copyright (C) 2010 John Wiley & Sons, Ltd.