The purpose of the present study is to develop ethyl cellulose (EC) microsponge loaded with curcumin (CUR)-beta cyclodextrin (CD) inclusion complex by modified emulsion solvent diffusion method as prolonged drug delivery system and thereby perform its invitro evaluations. Ethycellulose (EC) microsponges loaded with curcumin (CUR)-beta cyclodextrin (CD) inclusion complex were prepared by using modified emulsion solvent diffusion method. The compatibility of the drug CUR with the excipients was established by differential scanning calorimetry (DSC) and Fourier transform infrared spectroscopy (FTIR). Shape and surface morphology of the microsponges were determined by using scanning electron microscopy (SEM).The micromeritic properties of the microsponges were determined by using carrs's consolidation index, hausner's ratio and particle size by optical microscopy method. There was no serious interactions observed between the drug CUR and the excipients used, but of course the complexation of the drug with CD improved the water solubility profile of the drug which was confirmed by the phase solubility studies .The particle size of the optimized formulation was found to be 52.83 μm ±6.112(S.D), n=3.The invitro drug release of curcumin was controlled over a prolonged period of time of 12hours.The studies indicated that the CUR microsponge prepared by modified emulsion solvent diffusion method is effective in controlled release of CUR for a longer duration.