Terbutaline sulphate is a β2-adrenergic agonist bronchodilator and used to treat bronchospasm associated with lung diseases such as asthma, bronchitis, and emphysema. Bioavailability of terbutaline sulphate about 14.8 %. The drug half life is 3-4 hrs. So, in order to improve bioavailability, half-life and efficacy we have designed sustained release film-coated pellets of terbutaline sulphate. The drug loaded pellets were prepared by using extrusion/spheronization method. Core pellets were coated with a combination of ethylcellulose and HPMC polymers by varying ratios in a coating pan to achieve a sustainable release. The drug excipient mixtures were subjected to pre-formulation studies. The pellets were subjected to in-vitro drug release studies, and stability studies. FTIR and DSC studies shown that there was no interaction between drug and polymers. The percentage of drug content from the core pellets was determined by UV-Spectroscopy and was found to be 98.86 ± 0.32 % indicating good content uniformity. Formulation F5 was considered as the best formulation as it released 96.83±1.64 % of drug at the end of 24 hrs. The optimized formulation was also found to be stable.