Ibuprofen-carrageenan agglomerates were prepared by the method of thermal gelation in the liquid media. Agglomerates having a mean diameter in the range of 1000-1300 μ and entrapment efficiency of 60-80% were obtained. Scanning electron micrographs of drug-loaded microspheres showed that agglomerates are spherical in shape and had a rough surface texture. Fourier transform infrared spectroscopy and differential scanning calorimetric analysis confirmed the absence of any drug-polymer interaction. X-ray diffraction patterns showed that ibuprofen in the agglomerates was unchanged in crystalline form. The micromeritic properties of agglomerates found to be slightly changed by changing various processing parameters to give agglomerates of good flow property. The in vitro release profile could be altered significantly by changing various processing parameters to give a sustained release of drug from the agglomerates.