The aim of the present study was to develop and characterize a gastroretentive formulation for controlled drug release and to develop innovative gastro retentive formulation based on mucoadhesive patch systems using the solvent casting technique. Glipizide, an antidiabetic agent was used as model drug for formulating films. Mucoadhesive film was formulated using chitosan and HPMC K4M. PEG 400 was added as plasticizer in film preparation. 3 2 full factorial design was used to formulate the novel gastroretentive formulation. Amount of HPMC K4M(X1) and amount of chitosan (X2) was selected as independent variable while swelling index, folding endurance, mucoadhesion force and Q8 (% drug release after 8 h) was selected as dependent variables. The film with zigzag folding in the capsule was shown to unfold and swell under acidic conditions and provide controlled release of drug upto12 h in acidic medium. According to 3 2 full factorial design films, 9 batches were prepared and evaluated for surface pH, folding endurance, mucoadhesion force, drug content, in-vitro drug release etc. Surface pH of F1-F9 was in between 6.32 to 6.98. Thickness and % drug content for batch F1-F9 was found to be in between 0.236 mm to 0.289 mm and 95.42 % to 99.32 %, respectively. In-vitro drug release study of F1-F9 showed utmost 95 % drug release after 11 h. The results indicate that the dosage form is gastroretentive and can provide controlled release of drugs with narrow therapeutic window. Glipizide/ HPMCK4M / Chitosan (40:150:150) F8 was found to be optimized composition of mucoadhesive films that showed good swelling index, folding endurance, surface pH, mucoadhesion force, Q8 and % drug content.