The composite sponges were prepared by incorporating 5% of povidone-iodine into polymers like Gelatin, Acacia, Hydroxy Propyl Methyl Cellulose (HPMC) and Chitosan the excipients were used in different ratios and two different methods was used to prepare formulations. Prepared formulations were evaluated for drug excipient interactions, by Fourier Transform Infrared Spectroscopy (FT-IR) which elucidate there is no interactions between constituents used in formulation, morphology of the selected formulations were studied by Scanning Electron Microscopy (SEM) the results revealed that fine pores and smooth surfaces on the sponges and these sponges were evaluated for Physical Properties like Sponge Hydration index which showed formulation which were freeze dried formulations possess good hydration index. pH of sponge was found in the range of 5.5 to 5.9, Drug content was found to be 24.89mg and 24.93mg respectively. And In -Vitro Drug Release studies showed a percentage drug release of 75.15% and 76.26% respectively initially burst release was observed for both F1 and F3 formulations. Stability study for 3 months indicated that formulations were stable and results were comparable with initial results.