Compression of coated pellets is a practical alternative to capsule filling. The current practice is to add cushioning agents to minimize the stress on the coated pellets. Cushioning agents however add bulkiness and reduce the overall drug loading capacity. In this study, we investigated the performance of compressed coated pellets with no cushioning agent to evaluate the feasibility of predicting the coat behaviour using thermo-mechanical and rheological analysis techniques. Different coating formulations were made of ethyl cellulose (EC) as a coating polymer and two different kinds of additives were incorporated into the polymeric coating solution. Triethyl Citrate (TEC) and Polyethylene glycol 400(PEG400) were used as plasticizers at different levels to the coating formulations (10%, 20%, 30%). Thermal, mechanical and rheological measurements of the coating film formulations were achieved to investigate the effect of plasticizers. Thermal gravimetric analysis results (TGA) showed higher residual moisture content in films plasticised with PEG 400 compared to their TEC counterparts. Differential Scanning Calorimetry (DSC), Dynamic Mechanical Analysis (DMA) and Parallel Plate Shear Rheometer (PPSR) were used to study the influence of the level and type of plasticisers incorporated in coating film formulation on the performance of the coating film. In this study, both DSC and DMA were used to investigate the Tg for each film coating formulation in order to evaluate the effect of the additives. In general DMA results for the Tg value of the films were always higher by 10-20% than those measured by the DSC. Furthermore, clamp size and the frequency of the oscillation have an influence on the evaluation of Tg. Complex viscosity for different coating film formulations revealed that the shear hinning gradient changes with temperature and plasticiser type and concentration. The value of complex viscosity from DMA and PPSR exhibits power law behaviour. The rheological moduli were indirectly affected by the level of plasticiser. There was a discrepancy between the complex viscosity results obtained from both DMA and PPSR at similar temperature but they follow the same trend. The non plasticized polymer showed a 10 time higher complex viscosity values when measured by DMA over that measured by PPSR. The difference was smaller in plasticized films but it was not consistent. Therefore a consistent coefficient to correlate the DMA and PPSR couldn’t be accurately determined Coated pellets were compressed and key process parameters were evaluated. The obtained results revealed that the coating thickness has a significant effect on the release profile of the final products. It was found that by increasing the coating film thickness, the percentage released decreased. Also the compression force has lower influence on the drug release profile, while the dwell time has very low effect on the percentage release from the final products. Optimum release profile was obtained at a coating level of 5.5% w/w and a compression force of 4700N In conclusion, the elasticity of the plasticised EC films in this study meant that the internal stress is not dissipated during compression and the dwell time range that was used in this experiment. Increasing the thickness therefore was necessary to enhance the strength of the film and avoid cracking. The mechanical and rheological profiling was helpful therefore to understand the behaviour of the coated pellets and predict the film properties at various steps of the process of coating and compression (i.e., various shear rate regimes). Experimental design approach to studying the key process and formulation parameters helped identify the optimum values for the process.