The objective of this work was to develop optimized and systematically evaluate performances of mucoadhesive microcapsules of antihyperglycemic agent drug Metformin. Alginate microcapsules coated with mucoadhesive natural or synthetic polymers were prepared by Orifice-Ionic Gelation technique utilizing calcium chloride as a cross linking agent. The effect of type (natural or synthetic) and concentration of coating polymers and concentration of alginate on formulation was investigated. Prepared microcapsules were evaluated for Drug content, Entrapment efficiency, Shape, size, In vitro Mucoadhesion and In vitro release. The microcapsules obtained were spherical and free flowing. The microcapsules coated with mucoadhesive polymer Carbopol exhibited good mucoadhesive property in the in vitro Mucoadhesion test and also showed high percentage drug entrapment efficiency. The in vitro release study indicates that carbopol as coating polymer containing formulations showed controlled drug release up to 10 h from microcapsules.