Many energy conversion materials show increased performance, if the materials are used in nanostructured form. However, this could be detrimental for stability of the materials, since during cycling the nanostructuring tends to be lost because of particle growth. This problem may be solved by encapsulation of the active material in different types of matrices or coatings, which beyond the stabilization may also provide additional functionality, such as conductivity or mechanical reinforcement. This Perspective covers the general features of encapsulation strategies, and desribes selected examples for different types of energy conversion materials. At the end, promising development lines will be discussed, together with the need for a more systematic study of the effects of encapsulation.