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Present work reports extraction of mucilage of Eulophia campestris by multiple maceration technique using water and precipitation by acetone (36% w/w yield). Physicochemical characteristics of mucilage, such as solubility, swelling index, loss on drying, pH and viscosity, were studied and also microbial load was determined. The mucilage was evaluated for its granulating and binding properties in tablets, using paracetamol as a model drug. Mucilage was used in three different concentrations-6, 8 and 10% w/v. The granules were prepared by wet granulation technique. The prepared granules were evaluated for percentage of fines, average particle size, total porosity, compressibility index and flow properties. The properties were compared with starch, which was used as a standard binder at 10% w/v concentration. The tablets were prepared and evaluated for content uniformity, hardness, friability, disintegration time and in vitro dissolution profiles. The tablets had good physicochemical properties, and the drug release was more than 85% within 3 h. The tablets prepared by using 10% mucilage as binder exhibited more hardness than by using 6 and 8% concentrations. Hence, 6 and 8% concentrations can be considered as ideal concentrations for preparation of tablets.