Diclofenac Potassium has been recently launched as low oral doses in different countries for over-the counter use. However, given the considerable first-pass metabolism of diclofenac, the degree of absorption of diclofenac Potassium at low doses remained to be determined. The aim of this study was to prepare and evaluate liquid diclofenac Potassium for hard gelatin capsule. Methods: The liquid for hard gelatin capsules were prepared by using PEG 400, propylene glycol and water mixture under temp of 900 C followed by adding PVA, Cremophore EL, Labrasol and in last diclofenac potassium finally added to the mixture under stirring. Physico-Chemical Evaluation: Pre-formulation study such as organoleptic properties were evaluated using methods such as, determination of melting point solubility, determination of max of diclofenac potassium, standard calibration curve of diclofenac potassium, fourier transform infra-red (FTIR) spectroscopy. Final formulations were characterized before filling into capsule for particle size and poly-dispersity index, zeta potential, determination of pH and viscosity. Results: The zeta potential value is -11.1 indicates ideal physical stability of prepared liquid diclofenac potassium. The pH of formulations was observed in the range of 6.7±0.43 to 7.15±0.90. Viscosity of all formulation were found in the range of 65 to 95 CPS and lying within limits from the result it was observed that viscosity increase. Discussion: Hence, liquid diclofenac Potassium for hard gelatin capsule can be used for lower dose and higher bioavailability to get desire pharmacological effect and with less adverse effect.