Carvedilol, a BCS class II β blocker drug is formulated as a SR matrix tablet with micronized drug particle. Micronization helps improve dissolution and enhances systemic absorption for BCS II drugs such as carvedilol.Direct compression method was applied to prepare tablet using PEO 301 as a release retardant polymer. The formulation was optimized by a 3 level factorial design considering amount of PEO 301 and hardness of tablet as dependent variables. In-vitro release study showed near about 100% of drug release in 12 hrs. for lowest particle size drug whereas for non-micronized drug it was less than 80%.