Present research work reports the synthesis of Gellan gum (Gg) and methacrylic acid (MA) based grafted hydrogels (Gg-cl-poly(MA)) crosslinked using N, N′– methylene-bis-acrylamide (MBA) and the evaluation of their efficiency to be used as a sustained drug delivery carrier for anticancer drug i.e., etoposide. Various characterization techniques like Fourier transform infrared spectroscopy (FTIR), X-ray diffraction (XRD), and scanning electron microscopy (SEM) confirmed the grafting of Gg with MA and the formation of crosslinked Gg-cl-poly(MA) hydrogel polymer. The synthesized hydrogel showed pH-dependent swelling properties and exhibited a maximum swelling capacity of 867 % under optimized environmental conditions. The Gg-cl-poly(MA) was biocompatible and non-cytotoxic, which was confirmed by the hemolytic and cytotoxic tests. The release dynamics of etoposide from the Gg-cl-poly(MA) polymer matrix was checked under specific physiological conditions. Drug release was found to be significantly higher in the acidic medium, followed by the neutral and alkaline medium. This clearly indicated that etoposide drug release through synthesized hydrogel was stomach-specific and it is effective for the treatment of stomach cancer. The release mechanism of the etoposide drug was a Fickian-type diffusion mechanism in the acidic medium and a non-Fickian-type diffusion mechanism in the neutral and alkaline medium. The release profile of the etoposide was best fitted to the first-order rate model. The results showed that the synthesized hydrogel (i.e., Gg-cl-poly(MA)) was biocompatible, non-toxic, and could be used for the treatment of stomach cancer.