AbstractChitosan (CS) has attracted substantial attention as a sustainable biopolymer in drug delivery applications, in recent years, because of its nontoxicity, biocompatibility, and accessibility. This study develops chitosan/polyvinyl alcohol/carboxymethylcellulose (CS/PVA/CMC) ternary hydrogel with excellent efficacy as a potential delivery vehicle for the antidiabetic drug metformin hydrochloride. The incorporation of carboxymethylcellulose (CMC) in the blend remarkably improves the swelling properties of the hydrogel. Metformin hydrochloride is loaded in the CS/PVA/CMC ternary blend by ultrasonication method. The prepared hydrogel beads are characterized by, Fourier‐transform infrared spectroscopy (FT‐IR), Scanning electron microscopy (SEM), and X‐ray diffraction (XRD) techniques and confirm the presence of the drug in the beads. The loading and release of metformin from the CS/PVA/CMC hydrogel beads are followed by UV–visible spectroscopy at 233 nm. Different formulations are prepared by varying the compositions of chitosan and carboxymethylcellulose. α‐Glucosidase inhibitory studies reveal that metformin loaded CS/PVA/CMC hydrogel beads show excellent antidiabetic activity. The maximum value of inhibitory activity observed is 89%. Cytotoxic analysis proves that the beads prepared are nontoxic.