The aim of the present study was to enhance the dissolution and bioavailability of aceclofenac by using a natural biodegradable polymer, chitosan.Recently, natural polymers such as polysaccharides and proteins have received much attention in the pharmaceutical field owing to their good biocompatibility and biodegradability. Among polysaccharides, chitosan has been considered to be one of the most promising biopolymer for drug delivery systems. The approach was to precipitate chitosan over drug crystals in the presence of a salting out agent sodium citrate, along with micronization of drug crystals.If this process can be scaled-up to manufacturing level, this technique has the potential to develop into an invaluable technology in future. OBJECTIVE To carry out the preformulation studies. Preparation of aceclofenac chitosan formulations. Physicochemical characterization of the prepared formulations. To carry out in vitro drug release studies. To assess stability of the developed formulation. To carry out pharmacodynamic and pharmacokinetic studies in animals.