This study aims to encapsulate Ranitidine hydrochloride within floating alginate Hydroxy Propyl Methylcellulose beads as an oral Sustained release delivery system using ionotropic gelation technique. Ranitidine hydrochloride (RHCL) is an antiulcer drug and works on H2-receptor mainly in stomach. The primary absorption region of this drug is stomach. Since it is an antiulcer drug, it will be beneficial to retain the drug in gastric region. The half life of RHCL is approximately 2.1 hr and the dose of drug is also low which make it a suitable candidate for sustained release dosage form. By retaining it in stomach and by sustaining its release, the absorption of drug and its efficacy can be enhanced. To optimize drug entrapment efficiency and dissolution behavior of the prepared beads, different parameters of drug: polymer ratio, polymer mixture ratio, and gelling agent concentration were involved. The prepared beads were investigated with respect to their buoyancy, encapsulation efficiency, and dissolution behavior in the media 0.1 N HCl (pH 1.2).The release kinetics and mechanism of the drug from the prepared beads was investigated. All prepared Ranitidine hydrochloride beads remained floating on 0.1 N HCl medium over 12 hours. Besides, high yield beads of 71.01- 87.30% was obtained. Encapsulation efficiencies were in the range of 33.10 % -79.04 %, and were found to increase as a function of increasing drug: polymer mixture ratio and the gelling agent concentrations. The obtained results suggest that Formulation of RHCl as a sustained release dosage form can also minimize the loss of drug in comparison to conventional tablets.