Autonomous healing of transverse cracks in cross-ply composites was achieved using a self-healing prepreg which contains microcapsules containing a solvent-based healing agent. A self-healing prepreg material was first produced and it enables production of composites with high fiber volume fraction as well as uniform microcapsule distribution. The self-healing performance of this material system was examined in this study. The self-healing prepreg consists of E-glass fiber, EPON 862 resin, and an EPIKURE 3274 hardener together with ca. 3 pm diameter microcapsules. The microcapsules contain ethyl phenylacetate (EPA) and EPON 862 resin coencapsulated as the healing agent. The cross-ply composite was fabricated by hot pressing layers of self-healing prepreg in a stacking sequence of [0/905]s. Uniaxial tensile loading was applied to the cross-ply specimen, generating multiple transverse cracks in the 90° layers. The stress-strain behavior was measured during the initial (virgin) test and compared to subsequent loading cycles after healing. Transverse cracks of the composite led microcapsules to rupture and their healing agents were released into the crack plane where the agents swell the matrix and initiate further curing. Healing performance of the composite was assessed through stiffness recovery after damage. Examination of the fracture morphology by fluorescent confocal microscope and scanning electron microscope revealed further evidence of a released healing agent in the crack plane and healed transverse cracks.