Abstract: The main aim of the present work was to develop colon specific piroxicam loaded alginate microspheres intended for the treatment of rheumatoid arthritis. A multiparticulate system with a combined property of pH sensitive and biodegradability was developed. Piroxicam microspheres were prepared by using ionotropic gelation technique and coated by using coacervation phase separation method using different ratios of eudragit S100 which is a pH sensitive polymer. Both coated and uncoated piroxicam microspheres were evaluated for % yield, entrapment efficiency, particle size, flow property, in vitro percent drug release and release kinetics. Entrapment efficiency of the prepared microspheres was above 85%. Uncoated microspheres showed a delay drug release for about 10hr where as in case of eudragit S100 coated microspheres showed a delayed drug release for about 24hr in a pH medium mimicking the condition of GIT.