The current study presents an accurate, precise, and highly selective ultra‐performance liquid chromatography derivatization method for the quantification of Hydrazine in Gliclazide and its formulations. Gliclazide, derivatizing agent‐ 3,4,5‐trimethoxy benzaldehyde, and Hydrazine derivatives were separated on YMC Pack pro C18 column (50 × 3.0 mm id, 2 μm), column oven temperature maintained at 40°C, with flow rate 0.6 ml/min on ultra‐performance liquid chromatography system with gradient elution monitored at 333 nm. 0.1% trifluoroacetic acid and acetonitrile were used as mobile phase‐A and mobile phase‐B. Evaluated the robustness of the optimized method by employing a quality‐by‐design‐based design of experiments. The method was successfully validated as per the International Conference on Harmonization Q2 (R1) guideline and the United States Pharmacopeia < 1225 > general chapter. The United States Pharmacopeia resolution between the Gliclazide and Hydrazine derivative was 3.6. The limit of detection and limit of quantitation for Hydrazine derivative are 0.10 μg/ml and 0.30 μg/ml, respectively. The obtained regression coefficient (R2) was > 0.9998, and the %recoveries from the limit of quantitation to 150% level were 96.9%–100.8% from the linearity and accuracy studies, respectively. The method validation data and quality‐by‐design‐based robustness study indicate that the developed derivatization method is suitable for routine use in Quality Control laboratories.