Rifampicin and Isoniazid microcapsules were prepared by phase seperation coacervation method for inclusion in suspension formulations. Ethyl cellulose was used as the coating material for microencapsulation. Developed microcapsules were characterized for visual appearance, photomicrography, sieve analysis, drug content, bulk density, ethyl cellulose content and drug release studies. Microcapsules were found to be irregular in shape, free flowing with wide particle distribution in the range of 178-422 μm with 75 % drug content. Both Rifampicin and Isoniazid microcapsules exhibited prolonged release with first order kinetics. Rifampicin and Isoniazid microcapsule suspension formulation was characterized for pH, viscosity, sedimentation rate and drug content. The developed suspension was found to be uniform with drug content between 99-100%. Stability studies indicated that Rifampicin and Isoniazid suspension formulation exhibited greater stability as compared to pure drug suspensions. Hence, Rifampicin and Isoniazid suspension exhibits a potential to be developed as controlled release paediatric and geriatric formulation.