We propose an interpretable Capsule Network, iCaps, for image classification. A capsule is a group of neurons nested inside each layer, and the one in the last layer is called a class capsule, which is a vector whose norm indicates a predicted probability for the class. Using the class capsule, existing Capsule Networks already provide some level of interpretability. However, there are two limitations which degrade its interpretability: 1) the class capsule also includes classification-irrelevant information, and 2) entities represented by the class capsule overlap. In this work, we address these two limitations using a novel class-supervised disentanglement algorithm and an additional regularizer, respectively. Through quantitative and qualitative evaluations on three datasets, we demonstrate that the resulting classifier, iCaps, provides a prediction along with clear rationales behind it with no performance degradation.