The invention teaches an encapsulated curable adhesive composition especially adapted for use as a structural adhesive. The adhesive composition enables formation of a thin layer reactive composition of microcapsules and a two-part curative. The adhesive composition comprises a first population of microcapsules encasing a monomer and a first-part curative comprising an initiator. The adhesive composition further comprises a second-part curative. The second-part curative comprises an activator and a catalyst. At least the activator of the second-part curative is preferably encapsulated in a second population of microcapsules. The catalyst and the second population of microcapsules can be dispersed in a binder material, along with the first population of microcapsules. The first population of microcapsules contain encapsulated within the core a monomer having a Tg 35.degree. C. or less and the first-part curative. The first population microcapsules contain encapsulated within the core a monomer having a Tg 35.degree. C. or less along with the first-part curative. The encapsulated monomer and first-part curative constitute a blend which is a free flowing liquid having a viscosity of less than 500 Cp (milliPascal-second), and more preferably less than 10 Cp (milliPascal-second). The first population of microcapsules with first-part curative, and a second-part curative and second population of microcapsules are dispersed in a binder material. Reactive contact of the monomer and first-part curative with the second-part curative is affected by exuding the respective capsule contents into reactive contact through breakage of the microcapsules such as an interference fit of the substrate or substrates to which the composition is applied.