Topical advances in drug delivery have been directed towards the design of number of drug delivery systems for treatment of various diseases. In the present invention, we describes the development of poly(acrylamide-cosurfactant) hydrogel for the incorporation of ranitidine drug for potential application in anti ulcer and treatment of other conventional diseases. For this purpose, poly(acrylamide-co-surfactant) hydrogels were prepared by polymerizing an aqueous solution of acrylamide (AM) in the presence of a reactive surfactant (Latemul PD 104) using ammonium persulfate /N,N,N,N-tetramethyl ethylenediamine (APS/TMEDA) as initiating system and N,N-methylenebisacrlyamide (MBA) as a cross-linker. The formation of hydrogels were confirmed by Fourier Transform infrared spectroscopy (FTIR) and scanning electron microscopic (SEM) studies. The variation in the hydrogel networks formation by changing the concentrations of synthetic parameters was verified with swelling property. The ranitidine drug release studies were observed with this surfactant modified hydrogel systems.