There is provided a pharmaceutical composition comprising vildagliptin or pharmaceutically acceptable salt thereof. The composition comprises a core and at least one coating layer applied over the core, wherein the coating layer comprises vildagliptin or pharmaceutically acceptable salt thereof and one or more suitable polymer. By applying coating layer of vildagliptin or pharmaceutically acceptable salt thereof over inert core, composition with excellent storage stability and release profile can be prepared. Such composition of vildagliptin or pharmaceutically acceptable salt thereof exhibit improved storage stability, particularly levels of degradants in the formulation can be effectively controlled during storage.