Leflunomide is a disease modifying anti-rheumatic drug (DMARD), which effectively reduces the signs and symptoms of active rheumatoid arthritis (RA) in adults, while inhibiting joint damage and improving physical function. Direct compression was employed for the formulation of tablets. The powder blends of different tablet formulations were screened for preformulation studies like angle of repose, loose bulk density, tapped density, compressibility index and hausner's ratio. The tablets were tested for physical characteristics such as thickness, hardness, friability, weight variation and drug content. The matrix swelling behavior was also investigated. As the time increases, the swelling index was increased; later on it decreases gradually due to dissolution of outermost gelled layer of tablet into dissolution medium. All the evaluated physical parameters of the fabricated tablets were found to be within the acceptable limits.