The objective of the study was to prepare hollow microsphere as a new dosage form of floating drug delivery system with prolonged stomach retention time. Hollow microspheres containing Repaglinide were prepared by emulsion diffusion method using Eudragit S100 and Eudragit L100 as release retardant polymer. The prepared microspheres were evaluated for particle size, % drug loading, in-vitro buoyancy and in-vitro drug release, drug-excipients compatibility studies by FT-IR and surface morphology by SEM. The FT-IR studies showed compatibility of drug with the excipients used in the formulations. The particle sizes of the microspheres were ranges between192.2 ± 12.2 to 321.8 ± 8.3μm. The developed microspheres showed good in-vitro buoyancy, high entrapment efficiency and drug loading with sustained release of drug for 9h. The mechanism of drug release followed Higuchi kinetic model with non-Fickian diffusion, the SEM studies showed smooth surface and shape of the hollow microspheres. The developed formulation of Repaglinide in the form of floating microsphere has a great potential for therapy of diabetes type-II in future.