The fast disintegrating core tablets of budesonide, were prepared by direct compression technique. These tablets were coated with khaya gum (Polysaccharide polymer). These tablets were further coated using eudragit S-100 by dip coating technique. The tablets were evaluated for hardness, friability, weight variation, swelling index, drug content, in vitro release studies and in vivo studies in rabbits. In vitro drug release studies were carried out in presence and absence of rat cecal contents and revealed that khaya gum, when used as compression coating, protected the drug from being released in the upper parts of the gastro intestinal tract (GIT) to some extent but the enteric coated formulations completely protected the drug from being released in the upper parts of the GIT, and released the drug only in the colon by bacterial degradation of gums. It was found that the polysaccharide polymer khaya gum did not completely protect the drug release in the upper digestive tract and exhibited different release profiles in presence and absence of rat cecal contents. Hence, khaya gum alone can not be used either for targeting the drug to the colon or for sustaining or controlling the release of drugs.