A common problem associated with conventional gel breakers is that they can cause a premature reduction in gel viscosity at high temperatures. To address this, a urea-formaldehyde (UF) resin and sulfamic acid (SA) encapsulated polymer gel breaker was prepared via in situ polymerization with UF as the capsule coat and SA as the capsule core; this breaker was able to withstand temperatures of up to 120–140 °C. The encapsulated breaker was characterized using scanning electron microscopy (SEM), infrared spectroscopy (FT-IR), and thermogravimetric (TG) analysis. Meanwhile, the dispersing effects of various emulsifiers on the capsule core, and the encapsulation rate and electrical conductivity of the encapsulated breaker were tested. The gel-breaking performance of the encapsulated breaker was evaluated at different temperatures and dose conditions via simulated core experiments. The results confirm the successful encapsulation of SA in UF and also highlight the slow-release properties of the encapsulated breaker. From experimentation, the optimal preparation conditions were determined to be a molar ratio between urea and formaldehyde (nurea:nformaldehyde) of 1:1.8 for the capsule coat, a pH of 8, a temperature of 75 °C, and the utilization of Span 80/SDBS as the compound emulsifier; the resulting encapsulated breaker exhibited significantly improved gel-breaking performance (gel breaking delayed for 9 days at 130 °C). The optimum preparation conditions determined in the study can be used in industrial production, and there are no potential safety and environmental concerns.