Provided herein are methods for selecting polypeptides or proteins having one or more desired properties from a library of sequences expressed in eukaryotic cells, comprising: encapsulating said cells by photopolymerization; solubilizing said encapsulated cells to produce semipermeable microcapsules; optionally contacting said cells and/or said microcapsules with one or more agents to facilitate detection of activity or function of polypeptides or proteins of interest; and selecting polypeptides or proteins of interest having one or more desired properties. Also provided are methods for encapsulating eukaryotic cells for use in the selection of polypeptides and proteins as described above.