Controlled release of drugs can reduce the undesired effects of drug level fluctuations, and diminish the side effects as well as improve the therapeutic outcome of the drugs. In recent year, the scope of the drug delivery systems has been greatly expanded by the development of various hydrogels. The present work has focused on the design of a pH sensitive drug delivery system (DDS) based on starch, acrylic acid (AA) and β-cyclodextrins for controlled delivery of indomethacin. The hydrogels were prepared via graft polymerization of acrylic acid (AA) onto starch and β-cyclodextrins backbones by a free radical polymerization technique. Cyclodextrins are able to form water-soluble complexes with many lipophilic water-insoluble drugs. In aqueous solutions, the drug molecules located in the central cavity of the cyclodextrin are in a dynamic equilibrium with free drug molecules. The interaction of drug with the polymer was evidenced by FTIR spectroscopy and thermal gravimetric analysis (TGA). The morphology of the samples was examined by scanning electron microscopy (SEM). The results showed that the hydrogels have good porosity and provided high surface area for the loading and release of drugs. Drug release behavior was carried out at physiological conditions of phosphate buffer, pH 8. In basic pH (like the intestine medium) the hydrogels released the indomethacin, but in acidic pH (like the stomach medium) there was no tendency to drug release. By increasing the amount of cyclodextrin, the rate of drug loading and release increased due to the dynamic equilibrium and interaction between the loaded drug and the cyclodextrin. This study has demonstrated that the hydrogel matrices are potentially suitable for controlled-release systems.