The objective of this research was to develop a combined anti-diabetic formulation of two different drugs acting by different mechanism. So they can complement each other and together lower the blood glucose level effectively. Metformin and glimepiride act by different mechanisms. Glimepiride reduce hyper glycaemia by enhancing insulin secretion, whereas metformin acts to improve insulin sensitivity and suppress hepatic glucose output. Because of their complementary mechanism of action, combination therapy with glimepiride and metformin would be rational and may lead to benefits in terms of improved glycaemic control and improved tolerability at lower doses of the individual agents.Sustained drug delivery can improve patient compliance and help in maintaining effective level of blood glucose.