In this study we developed and evaluated a prototype of an effective occlusive mucoadhesive system for prophylaxis and/or treatment of oral mucositis based on chitosan and gelatine models together with nystatin as a prophylactic agent incorporated into the formulation and investigated drug release in-vitro. Results of in vitro studies showed that chitosan and gelatine based gels posses properties that makes them excellent candidates for treatment of oral mucositis. These properties include not only the palliative effects of an occlusive dressing but also the potential for delivering therapeutic compounds with chitosan gels providing drug concentrations above their minimum inhibition concentration and extending the retention time in the oral cavity due to their bioadhesive properties. Chitosan also offers an advantage over suspensions because of its inherent antimicrobial properties. The performance of gelatin-based gels highlights the novel, non-toxic, in situ forming gelatine based hydrogel. The results of in vitro drug release experiments demonstrated that all the hydrogel showed sustained release properties.