Dried Ferrous Sulphate is commonly used as iron salt for the treatment of iron deficiency by oral route, but conventional products face the problems of poor bioavailability due to its carrier-mediated absorption in an upper gastrointestinal region with a lower residence time at the absorption site and gastrointestinal side effects due to immediate release of the entire dose of an irritant drug which requires higher dosage frequency and prolonged duration of treatment to replenish deficient iron. Gastroretentive floating pellets of Dried Ferrous Sulphate would overcome these problems and to develop them using extrusion-spheronization, various grades of HPMC, ETHOCELTM 100cp along with Gelucire® 43/01 were tried in preliminary batches. Further optimization was done using Central Composite Design by selecting the different ratios of Gelucire® 43/01 and ETHOCELTM 100cp to a drug as formulation variables and spheronization time and speed as process variables, each at 3 levels. PVP K-30 as a binder and Isopropyl alcohol as a solvent were used. Pellets were characterized for average pellet size by sieving, roundness by microscopy, drug content, % drug release in vitro, and floating behaviour. Std run 3 with Gelucire® 43/01 (1.8:1) and ETHOCELTM 100cp (1.6:1), spheronized at 2000 RPM for 5 minutes was considered an optimized formulation which yielded an average pellet size of 868 µm ± 30, pellet roundness of 0.93± 0.02, immediate floating and sustained release for 12 hours in 0.1 N HCl dissolution medium and formulation with these characteristics could result into increased utilization of iron from the administered dose with reduced side effects.