The aim of present study was to develop and characterize polymeric micelle (PMs) of anticancer drug, Capecitabine (CTB). Preliminary trial batches were employed to screen the significant formulation and process variables of CTB loaded polymeric micelles by Quality-by-Design (QbD) approach. Eight variables were screened and the results showed Eudragit S 100 and HP $\beta$ Cyclodextrin (HP $\beta$-CD) to be the most significant factors influencing mean particle size and zeta potential of the polymeric micelle formulation. The main effects plot depicted that all the independent variables had a statistically significant effect on the response variables. The selected batch was then studied for different characterization parameters and for invitro cytotoxicity studies. {\textcopyright} 2013 IEEE.