Advancements in plant cell tissue culture have helped to address the problems faced with several economically important plant species. Micropropagation and encapsulation technologies have been combined to make a new innovation called ‘artificial seeds’ or ‘synthetic seeds’ or “synseed” which combines both advantages of these two technologies. Alginate coats are used for artificial seeds to encapsulate somatic embryos/vegetative buds/ micro propagules that can act as seeds. They can then be germinated into plantlets upon incubation under in vitro or in vivo conditions and retain their regeneration potential after storage at low temperatures. Germplasm preservation and exchange between national and international laboratories may rely on using encapsulated propagules of elite plants. Also, this technology has been successfully exploited for cryopreservation by use of encapsulation - dehydration, or encapsulation - vitrification in germplasm storage of elite plant species. This review gives an overview of latest developments on synseed technology with special emphasis on explant selection for making successful synseeds as well as matrices that are used as an encapsulation material for synseeds. Moreover, the constraints impeding the advancement of seed technology and related future perspectives are also discussed