The objective of the present investigation was to develop an alginate-HPMC K4M microbead-based gastro-retentive drug delivery system incorporating Famotidine for the treatment of gastrointestinal ulcers. The 3 2 full factorial designs were used for the optimization of famotidine-loaded floating microbeads. Two factors were evaluated, each at 3 levels; experimental trials were performed for all nine possible combinations. The amount of HPMC K4M (X1) and rotations of stirring speed (X2) were selected as independent variables. The % entrapment efficiency, % drug release at 12 hr, and % buoyancy were selected as dependent variables. The morphological properties, mean particle size, drug entrapment efficiency, drug loading, in-vitro buoyancy studies, in-vitro drug release, and in-vivo antiulcer activity of microbeads were all investigated. The effect of formulation variables on the response variables was statically evaluated by applying ANOVA at a 0.05 level using the software Design Expert® 13 (Stat-Ease, USA). The average size of optimized alginate-HPMC K4M microbeads was 0.86±0.35mm, with estimated entrapment effectiveness of 71.43± 0.21%, cumulative drug release of 98.75± 0.50% and percent buoyancy of 88.82±0.26%. Alginate -HPMCK4M microbeads containing Famotidine were successfully prepared using full 3 2 factorial designs and can be utilized to treat peptic ulcers efficiently. In-vivo, antiulcer activity indicated that the improved microbeads formulation might prevent ulcer formation in rats' stomachs. The method presented appears to be promising for drug delivery to the stomach.