The aim of the present investigation was to develop a once-daily modified release (MR) matrix tablet formulations of Capecitabine (CPC), an anti-cancer drug, using Hydroxy Propyl Methyl Cellulose (HPMC K4M & HPMC K15M) as drug release retardant. The tablets were prepared by direct compression process and evaluated for various physico-chemical/mechanical parameters. Among the two grades of HPMC used, K15M was selected as release retardant based on viscosity in controlling the CPC release during dissolution. The effect of different fillers like microcrystalline cellulose (MCC, Avicel PH 105), Spray Dried Lactose (SDL), Pre Gelatinized Starch (PGS), Di Calcium Phosphate (DCP) on CPC release was also studied and the percent release at the end of dissolution is in the order of SDL > Avicel PH 105 > DCP > PGS. The formulation containing 10% (w/w) of HPMC K15M and MCC (Avicel PH 105) as filler gave a complete and controlled release of CPC over a period of 24h (94.4 ± 1.76 %). The dissolution data was also evaluated for drug release kinetics and mechanisms.