The work investigates the development and optimization of chitosan-alginate beads containing Losartan potassium (LP) through ionotropic/external gelation technique using $3^2$ factorial design. The effect of polymerblend concentrations i.e. chitosan and sodium alginate on the drug encapsulation efficiency (DEE%), and cumulative drug release after 20 h ($R_{20h}%$) was optimized. The DEE% of all these beads was within the range of $67.12{pm}1.97-89.81{pm}1.52%$ with sustained in vitro drug release of 80.98-97.13 % over 20 h. The in vitro drug release from these beads was followed first order kinetic model. The beads were also characterized by FE-SEM, FTIR and XRD analysis. The swelling of chitosan-alginate beads containing LP were influenced by the pH of the test medium. Chitosan coated alginate beads were developed as oral sustained delivery carriers for LP in order to improve patient compliance, to reduce side effects associated with it and also to reduce the dose/dosing frequency in the management of hypertension.