Azathioprine loaded gelatin microspheres were formulated to control/target drug release in an arthritic joint by magnetic force or intra-articular injection. Glutaraldehyde cross linked microspheres were characterized for drug loading, entrapment efficiency, gas chromatography, magnetite content, particle size, scanning electron microscopy (SEM), Fourier-Infrared spectroscopy (FT-IR), differential scanning calorimetry (DSC) and in vitro release studies. The gelatin microspheres loaded with azathioprine showed 17 of drug loading with 82 of entrapment efficiency. Gelatin magnetic microspheres showed 13 of loading with 87 of entrapment efficiency. Gas chromatography confirms absence of residual glutaraldehyde in the microspheres. The magnetite content of the azathioprine loaded gelatin magnetic microsphere was 25.7 w/w. The average particle sizes of gelatin nonmagnetic and magnetic microspheres were 41 and 54 ?m, respectively. SEM confirms the spherical nature of the microspheres. FT-IR revealed the absence of drug polymer interaction, and DSC suggested amorphous nature of entrapped drug in the microspheres. The formulated microspheres could release the drug over a period of 48 h.