Olanzepine microsphere prepared by external Inotropic gelation technique by using sodium alginate and carbopol 974 P as a polymer and calcium chloride as a cross linking agent. In this formulation combination of sodium alginate and carbopol 974 P used as a polymer that helps to retard the releasing the drug and increases bioavaibility of drug. The Olanzepine microsphere has other characterization is in the term ofdrug content, drug entrapment efficiency, P XRD, Differential Scanning Colorimetry, FTIR , SEM, in vitro drug release and in vivo drug release. The in vitro release pattern of Olanzepine microsphere studied in 900 ml of 0.1 N Hydrochloric acids, using USP dissolution apparatus I. The optimized batch F7 shows greater than 80 % of drug release that is due to using carbopol polymer that helps to retarded the drug release at targeted site over the other formulation. Optimized formulation shows better antidepressant action as compare to pure Olanzepine drug.