The present study has been performed to microencapsulate alogliptin, an antidiabetic drug (dipeptidyl peptidase-4; DPP-4 inhibitor) for enhancing gastric residence time of drug thereby increasing its bioavailability. The attempt of this study was to formulate the alogliptin loaded floating microspheres by emulsion solvent evaporation technique by varying the ratio of polymers i.e. cellulose acetate butyrate (CAB) and polyethylene oxide (PEO), drug loading and concentration of poly(vinyl alcohol) (PVA) solution. The prepared formulations were studied for entrapment efficiency, particle size, floating behaviour, surface morphology by SEM and in-vitro drug release. FTIR spectroscopy was done to confirm the chemical stability of drug after penetration of microspheres. Microspheres formed were spherical with smooth surfaces as revealed by SEM. Formulation F3 composed of CAB: PEO (80: 20 wt%) containing 1.5 wt% PVA solution and drug loading (10 wt%) gave the most advantageous entrapment (87.02±1.06%) and release results after 12 hrs (Q12h=78.19±0.90%) in simulated gastric fluid pH 1.2 as compared to other compositions. The microspheres tend to float over the simulated gastric media for more than 10 h. The % buoyancy of microspheres was found to be up to 89.50±1.53% and showed gastroretentive delivery of the drug. Floating microspheres of alogliptin with good floating ability and gastroretentive release were developed.