The present study aim to prepare and characterize prolonged local drug delivery of antimicrobial on bones tissue formation and its In-vitro evaluation. The results of drug released pattern were analysed after coating. In formulation (F1), the drug release was steep till 73%, where coating showed no such retardation effect. After 73% of drug release, F1 showed prolonged release of drug even after coating with 1% and 2% Chitosan, F2 and F3 showed prolonged better effect with 1% as compared to 2% Chitosan coating. In formulations containing one part of bioglass (F4 and F6) Showed prolonged release by 2% coating followed by 1% Chitosan coating. F5 was the exception where coating favoured dissolution. F8 and F9 showed prolonged release of drug by 1% than 2% Chitosan. In-case of In-vitro study, concentration was maintained above MIC i,e above 0.032 except in 816 hours where the drug concentration was observed below MIC (Fig No-14). F4C was found to be the best i,e 0.880 (Table No-06) for prolonged drug release over 6 weeks. FTIR study confirmed that characteristic peaks showed by Moxifloxicin (Fig No-3 & Table No-5) were 719cm-1, 1045cm-1, 1702cm-1 and 3327cm-1 which were also shown by developed formulations (725cm-1, 1051cm-1, 1703cm-1 and 3543cm-1). For In-vitro bioactivity, SEM were also performed after 24hrs (Fig No-15) and 48hrs (Fig No-16), the intensity of the HAP in 48hrs was more as compared to 24rs which confirmed that formulation is able to induced new bone cell after implantation. This result indicates that these newly prepared formulations could be a potential drug delivery system in osteomylietis condition (induces new bone cell) and can be helpful for the scientists for the particular field of study in near future.