An encapsulation process for forming a multi-compartment capsule. The process comprising the steps of: (1) providing a primary capsule having a base and a cap; (2) providing a secondary capsule having a base and a cap; (3) introducing at least one ingredient having a first physical state (i.e., solid, liquid, gas or dispersion) into a receiving chamber within the internal periphery of the secondary capsule; (4) positioning the cap of the secondary capsule into a sealing relationship with the base of the secondary capsule; (5) introducing at least one ingredient having a second physical state (i.e., solid, liquid, gas or dispersion) into a receiving chamber within the internal periphery of the primary capsule; (6) introducing the secondary capsule into the internal periphery of the primary capsule; and positioning the cap of the primary capsule into a sealing relationship with the base of the primary capsule. The ingredients introduced within the primary and secondary capsules comprise at least one active ingredient or medicament (e.g., pharmaceutical, biotechnical, nutraceutical, vitamin, dietary supplement, mineral or combination thereof). The component parts of the multi-compartment capsule may include various time-release coatings to facilitate release of active ingredient(s) or medicaments at different rates. The capsular cap may be configured in such a manner or a filling material may be introduced into the cap to substantially reduce any potential dead space volume within the capsule, thereby minimizing the opportunity for reaction between an air bubble and one or more of the active ingredients introduced into the capsule.