Systemic investigation of natural polysaccharides and their derivatives can lead to interesting discoveries in the fields of therapeutic and industrial research; allowing them to compete with synthetic products. The aim of the study was to isolate and characterize mucilage (dietary fiber) from Coccinia indica to assess its suitability as excipient and to evaluate its antioxidant potential. The mucilage so isolated was characterized for various physicochemical properties as swelling index, ash value, moisture content, microbial load, total polysaccharide, uronic acid content and rheological properties. Paracetamol tablet containing mucilage at concentration of 2.5% w/w, 5% w/w, 7.5% w/w, 10% w/w as binder was prepared by wet granulation and compared with standard binder acacia. The prepared tablets were evaluated for various pre-compression and post-compression parameters. The drug excipient interaction was characterized by DSC and antioxidant potential by DPPH. Formulation at concentration of 5% w/w exhibited good flow properties, compressibility and drug release. Furthermore, it exhibited strong antioxidant activity by scavenging DPPH. The crude mucilage (dietary fiber) from C. indica is an excellent source towards its development as excipient to nutraceutical/pharamaceutical and functional food in prevention of various disease.