Capsule networks (CapsNets) have recently shown promise to excel in most computer vision tasks, especially pertaining to scene understanding. In this paper, we explore CapsNet's capabilities in optical flow estimation, a task at which convolutional neural networks (CNNs) have already outperformed other approaches. We propose a CapsNet-based architecture, termed FlowCaps, which attempts to a) achieve better correspondence matching via finer-grained, motion-specific, and more-interpretable encoding crucial for optical flow estimation, b) perform better-generalizable optical flow estimation, c) utilize lesser ground truth data, and d) significantly reduce the computational complexity in achieving good performance, in comparison to its CNN-counterparts.