There is a strong need for new excipient in the market to modulate flow property, compressibility, solubility, disintegration, stability, dissolution or bioavailability of drug molecule. Developing a new adjuvant is uneconomical and laborious from the standpoint of safety and regulatory clearances. Hence, the formulation scientists are constantly working on modification of existing excipients to meet the ever-changing demands of industry. Co-processed excipients are combinations of two or more excipients that possess performance advantages that cannot be achieved using a physical admixture of the same combination of excipients. Present research work deals with development of multifunctional excipient, co-processed glyceryl monostearate- dicalcium phosphate dihydrate, to improve flowability and compressibility of the blend and to provide sustained release of highly water soluble drug, tramadol hydrochloride. There are a wide variety of drugs in whose formulation the prepared co-processed excipient of glycerylmonostearate and dicalcium phosphate dihydrate can be used. Hence, its commercial viability needs to be exploited in all case.