The aim of the study is to develope a formulation of atenolol for the nasal drug delivery system with consideration to parameters require for nasal administration, to get maximum utilization and efficacy of the drug also delivery of drug in case of emergency situation. The use of atenolol in conventional dosage form possesses several disadvantages like the absorption in GI tract is low, hence low bioavailability, require large amount of dose and has to pass first pass metabolism. This encourages us to formulate the dosage form with atenolol as a novel drug delivery which will show maximum potential utilization of the atenolol. The five formulations of microspheres were formulated with hydroxypropylmethyl cellulose K4M by spray drying technique. The in vitro and ex vivo studies of microspheres were performed. The Scattering Electron Microscopy (SEM), X-Ray Diffraction (XRD), and Histopathological study was also performed. The SEM demonstrated spherical particles with rough surface. The XRD studies show amorphous nature of drug entrapped in microspheres. The Histopathological study revealed intact nature of sheep nasal mucosal structure on treatment with microspheres. Particle size, swelling ability and mucoadhesion of microspheres was increased with the increase in drug: polymer ratio. The results indicate that atenolol spray dried microspheres formulated with HPMC K4M is a promising nasal delivery system.