The objective of present study was to prepare and characterize aceclofenac sustained release tablets prepared by melt granulation technique. The granules were prepared by hydrophilic meltable binder PEG 4000. Compared to ordinary conventional technique, this method does not employ any organic solvent or water and hence reduces drying step because dried granules were obtained by cooling them. And moreover it is less time consuming process. This method can be used for granulating water sensitive material and for producing sustained release granules. Melt granulation technique fulfill today's pharmaceutical industry need because it is simple, continuous and efficient. Different formulation trials of aceclofenac tablets were prepared using PEG 4000 and among the various prepared trials, the best formulation is chosen. The best judged formulation were found to be effective in sustaining the drug release up to 10 hrs.