In the present work a oral polymeric microsponge formulation of etodolac has been developed. The study includes formulation and evaluation of etodolac microsponges. The idea behind developing a oral polymeric microsponge delivery system was to deliver Etodolac in a sustained release pattern for an extended period of time to reduce frequency of taking and improve patient compliance. To begin with, the variables involved (viz. selection of internal and external phase, selection of type and concentration of emulsifier, selection of speed and time of stirring required for preparation) in the preparation of the microsponge were identified and their effect on the physical and morphological properties of the microsponges was determined.