In wet granulation process, granules are prepared in rotary drum granulator by adding a liquid binding agent as an aqueous solution of corn starch. Various factors, which affecting the production and strength of granules are particle size, moisture (liquid binder), residence time (time of rotation) and binder. Liquid binding agent plays a significant role in determining the strength of granules. To get better production and strength of granules several experiments are carried out with varying moisture content by keeping constant time of rotation and feed quantity. Increase in moisture leads to increase in production and strength of granules until an optimum condition is reached where nucleation and layering is done perfectly. Further increase in moisture leads to less strength and more plasticity this is due to over coalescence of granules. To determine the strength of granules a very important test i. e. Drop test is done with repeated droppings and with varying height of dropping for different size of granules at wet and dried conditions. From the experiments and drop tests on different size of granules at different conditions, an optimum condition of moisture content for feed is obtained, which is responsible for more production and added strength of granules.