This investigation used Moi gum to develop semi-interpenetrating polymer network (IPN) hydrogel particles with carboxymethyl xanthan gum in aqueous environment using aluminum chloride as crosslinker. The semi-IPN hydrogel systems had >90% of drug entrapment efficiency. Increase in Moi gum concentration from 33.33% to 66.66% reduced swelling of semi-IPN hydrogel particles by 17.6% and 23.3% in pH 1.2 and pH 6.8, respectively in 2 h. The semi-IPN hydrogel particles made up of 66.66% Moi gum released 94.8% of drug in 8 h. The modified xanthan gum alone however released about 98% drug in 3 h in simulated gastrointestinal pH. Irrespective of pH, the drug release followed an anomalous diffusion mechanism. FTIR analysis did not reveal any drugpolymer interaction. The thermal and x-ray diffraction investigations suggested amorphous state of drug in semi-IPN hydrogel system. Moreover, the hydrogel systems demonstrated more than 90% Caco-2 cell viability which supported the non-toxic nature of the hydrogel system. Preclinical experiments on male albino rats showed that the semi-IPN hydrogel systems could allow monitoring of anti-diabetic efficacy over 8 h. Overall, a suitable combination of negatively charged and neutral polysaccharides appeared promising in developing semi-IPN hydrogel particles, which could tailor the drug delivery performance, especially the drug release process and preclinical anti-diabetic activity.