The invention provides a microcapsule damping material with urea-formaldehyde resin as capsule wall. The material simultaneously has an effect of absorbing electromagnetic waves. According to the invention, a tetrachloroethylene suspending solution containing Fe3O4 magnetic nanoparticles is used as a capsule core, urea and formaldehyde are used as wall materials, and an in-situ polymerization method is adopted to synthesize a magnetic microcapsule; and the magnetic microcapsule and a resin matrix are combined to prepare a microcapsule/resin composite material. The addition of the magnetic microcapsule endows the composite material with excellent damping performance. And simultaneously the internal ferromagnet concentration of the microcapsule can be adjusted to reach the effect of absorbing electromagnetic waves.