This research focused on the formulation and evaluation of capsules containing herbal extract of Musa Paradisiaca for treatment of anaemia. The extract of Musa Paradisiaca was formulated as granules by wet Granulation method using various excipient viz .corn starch, stearic acid, talc, microcrystalline cellulose The granules were designed by using corn starch microcrystalline cellulose as a diluents , disintegrant and binder.stearic acid as a lubricant and talc as a glident . furthermore, the capsules are evaluated for tap density, bulk density, carr’s index , hausner’s ratio ,angle of repose ,weight variation ,disintegration test ,dissolution test etc. The prepared formulations were subjected to in-vitro dissolution studies and studied for variables affecting the dissolution profile of the capsules. Drug release from F2 and F4 was 85.26 and 83.96 at 12 hrs. From results it was concluded that, for drugs having high dose the Cellulose was better polymer to sustain a drug release and to minimize a drug concentration.