In recent years scientific and technological advancements have been made in the research and development of controlled release oral drug delivery systems by overcoming physiological adversities. There are so many oral delivery systems in that one of the advance techniques is Pellatization. Indomethacin extended release capsules prepared by pellatization method that the indometahcin is coated on inert sugar spheres by using povidoneK-30 as a binder solutions and Hydroxypropylmethylcellose, Ethyl cellose coating agents used for extended release action. The prepared capsules were evaluated for content uniformity weight variation, in-vitro disintegration time, assay, and in-vitro drug release study. All the formulation exhibited assay, content uniformity with in the range given in USP. Dissolution studies revealed that formulations containing Cross povidone-k 30 2.31gm coating agent Hydroxypropylmethylcellose, 0.312gm of ethyl cellose 0.216gm Showed 100% of drug release, at the 12th hour. The concentration of coating agents Hydroxtpropylmethycellose and Ethyl cellose had an effect on in-vitro drug release had the same drug release profile when compare with US dissolution parameters, and reference drug release. Thus, the capsules apart from fulfilling all official and other specifications and exhibited higher rate of drug release. © 2011 Elsevier B.V., All rights reserved.