Heat-expandable microspheres include a shell of thermoplastic resin and a blowing agent encapsulated therein having a boiling point not higher than the softening point of the thermoplastic resin, have a maximum expanding ratio not lower than 50 times, and are thermally expanded into hollow particulates having a repeated-compression durability not lower than 75 percent. The method of producing the heat-expandable microspheres includes the steps of dispersing an oily mixture containing a polymerizable component and the blowing agent in an aqueous dispersing medium containing a specific water-soluble compound and polymerizing the polymerizable component contained in the oily mixture.