The major objective of the preformulation study is to develop the elegant, stable, effective and safe dosage form by establishing kinetic rate profile, compatibility with the other ingredients and establish physico-chemical parameter of the drug. Among these properties drug solubility, drug excipients interaction, polymorphic forms and stability plays important role in preformulation study. The solubility of terbutaline sulphate in different solvents was studied. The calibration curve of the drug was prepared in phosphate buffer pH 7.4 by determining absorbance by UV visible spectrophotometer at 276 nm. The compatibility studies if the terbutaline sulphate with the excipients viz. eudragit RS100 and ethyl cellulose was performed using FTIR. The observed data complies for a sustained release formulation. Ethyl cellulose and Eudragit RS 100 may be used to prepare a matrix system for slow release profile formulations. These polymers have compatibility with terbutaline sulphate. The results provide promising baseline information that both ethyl cellulose and eudragit RS 100 are compatible with terbutaline sulphate and suitable to prepare a matrix formulation for sustained release action.