Biocompatibility, stability, and efficiency remain among the major goals in the development of new drug delivery systems. Herein we describe a facile method for encapsulation of Bone Morphogenetic Protein-2 (BMP-2) at high concentrations and in mild conditions by exploiting the thermo-responsiveness of an elastin-like polymer. Chemically synthesized poly(VPAVG) demonstrates excellent biocompatibility, stability at room temperature, and allows the use of mild conditions and harmless solvents, such as water, for its production. Here, we describe how to use a recombinantly produced poly(VPAVG) polymer to entrap BMP-2 with a high encapsulation efficiency and the methods for in vitro bioactivity assays.