Indomethacin is used as a NSAID. The objective of the present study was to design and evaluate a modified pulsincap drug delivery system of Indomethacin for treatment of rheumatoid arthritis. Capsule body was made water insoluble by cross linking with formaldehyde. The modified capsule was filled with drug and with polymers such as HPMC K100, CCS, Magnesium sterate to expel the drug after pre-determined lag time. A hydrogel plug made of HPMC K100 was placed in the capsule body to achieve desired drug release after lag time for chronotherapy of rheumatoid arthritis. Untreated cap was fitted to the treated body was sealed. The drug was subjected to pre-compression parameters such as angle of repose, bulk density, tapped density, compressibility index, Hausner’s ratio. The capsules were subjected to post formulation evaluation studies such as %weight variation, %drug content, in¬¬ vitro dissolution studies respectively. The pre and post formulation parameters are within acceptable limits. The compatibility of the drug, polymers& excipients were determined by FTIR spectroscopy. The results showed that the drug was compatible with polymers and other excipients. Invitro dissolution studies were carried out using pH 7.2 buffer for 4hrs.Based on the results f5 formulation showed good dissolution profile. The release data was fitted to various mathematical methods such as zero order, first order, Higuchi, Hixson-Crowell and Korsemeyerr-peppas to evaluate the kinetics and drug release. The drug release follows first-order kinetics and the mechanism was found to be Anomalous (Non-Fickian) diffusion.