Sustain release with the introduction of matrix tablets have proved to be an effective tool to control the release of drug without involving the complex production procedures. Matrix tablets are one of the most widely used oral controlled –release systems containing a therapeutic agent, homogeneously dissolved or dispersed, in a compressed water-swellable core. Interactions between water, polymer, and drug are the primary factors for controlled release, various formulation variables, such as polymer grade, drug/polymer ratio, drug solubility, and drug and polymer particle size can influence drug release rate to a greater or lesser degree. One of the most important stages in the formulation process is the selection of the polymeric matrix formers. Glipizide was selected as a candidate for developing sustained release matrix tablet. An attempt was made to prepare inclusion complexes with β -cyclodextrin. The major objective of the present study is to formulate and evaluate sustained release matrix tablets of Glipizide-β-cyclodextrin complexes using hydrophilic polymers in view to sustain the drug release. Glipizide-β-cyclodextrin complexes were prepared by employing kneading technique and characterized by FT-IR and DSC. Matrix tablets of Glipizide-β-cyclodextrin complex were prepared by direct compression method. The compressed matrix tablets were evaluated for the tablet properties using official procedures.