Gliclazide is an oral hypoglycemic agent used in the treatment of non-insulin dependent diabetes mellitus (NIDDM). Among the people who are suffering from long term disorders, the major had been categorized under the people who are suffering from diabetes and a dosage form is needed for them that should provide continuous therapy and should have a high margin of safety. Microencapsulation plays a great role in providing such a kind of dosage form. Gliclazide microspheres with a coat consisting of alginate and Guar gum were prepared by orifice-ionic gelation method and emulsification gelation technique. In the present investigation an attempt was made to develop gliclazide floating microcapsules by employing natural cross linking agents i.e egg shell solution,with a view to prolong the gastric residence time. Orifice ionic gelation technique was used to prepare microcapsules by employing sodium alginate as polymer. Studies were carried out on influence of formulation variables on drug release rate, entrapment efficiencies and floating behavior. The formulated microcapsules were characterized for their micrometric properties, floating properties, drug loading and entrapment efficiency and invitro drug release studies. The gliclazide microcapsules formulated by employing the core: coat (1:1) and having the composition 1.5%v/v acetic acid, 55.55%w/w sodium bicarbonate, 2% w/v sodium alginate, 150ml of 0.1M egg shell solution as curing agent, and by maintaining 48hrs curing time showed required drug release upto 12hrs. Keywords: Gliclazide , microspheres , ionic gelation technique , acetic acid, sodium bicarbonate, sodium alginate and egg shell