A study was made to investigate the effects of various binders on the physical properties of acetaminophen granules and tablets prepared by wet and fluidized bed granulation methods. The binders used were povidone (K-90), hydroxypropylcellulose (HPC-L) and gelatin. The fluidized bed granules were more porous than the wet massed, and the tablets prepared by fluidized system showed improved disintegration and dissolution characteristics. The dissolution rate was fast in the order of gelatin>povidone>hydroxypropylcellulose in tablets prepared by fluidized system, and povidone>hydroxypropylcellulose>gelatin in tablets prepared by wet granulation.