The invention relates to extended release tablets of gliclazide and particularly deals with an improved formulation of gliclazide extended release tablets using hot melt granulation technology. Gliclazide extended release tablet formulation(Hot Melt) with polyethylene glycol 8000 along with hydroxypropylmethyl cellulose (HPMC K4M) was found to be the ideal for controlling dissolution profile. The formulation is optimum in terms of obtaining the desired dissolution profile of gliclazide