The objective of the present study is to formulate and evaluate the Capsule system with the anti diabetic mini tablets of Glipizide and antihypertensive granules of Losartan potassium with different release patterns by using suitable Excipients. Ethyl cellulose is used as a release retarding polymer in various concentrations in the formulation of the Glipizide mini tablets and the Losartan potassium granules were prepared by using Crospovidone as a super Disintegrant in various concentrations for the immediate drug release. The drug Excipient compatibility studies were performed by FTIR spectroscopy. The pre formulation studies were performed. The in vitro drug release studies were carried out by using the dissolution Apparatus - II at 100rpm in 0.1N HCl for Losartan potassium and 50rpm in 6.8 pH phosphate buffer for Glipizide as described in USP. The simultaneous estimation of both the drugs was carried out by using ultra violet spectroscopy. Optimized formulations are filled in to the hard gelatin capsule systems by using the working formula mentioned above. Formulation CF2 and CF3 showed the best results for the losartan potassium IR (immediate releasing) granules and Glipizide SR (sustained releasing) mini tablets simultaneously. Stability studies were performed for optimized formulation. The capsule systems were observed for accelerated stability studies for a period of two months the obtained results were within specifications.