Oral pelletized drug delivery system gives more advantageous biopharmaceutical result in compared to single-unit dosage forms, like better distribution and transportation in the gastrointestinal tract (GIT). In the pharmaceutical industries many techniques are available for pelletization such as solution layering, suspension layering or powder layering, cryopelletization, freeze pelletization, spray congealing, extrusion-spheronization (ES), hot-melt extrusion process. ES technique is very acceptable and it has gained more attention because of its simplicity and fast processing. This technique is widely applied for the production of oral sustained release, controlled release drug delivery system and it also overcome the problems related to bioavailability and site specific drug delivery system. This review article discuss about the aspects of ES technique with their different steps involved in the process of pellets production. We also discussed about the factors which can influence the pellet quality and methods for evaluation of the quality of pellets.