Abstract: The present invention relates to a medicated chewing gum comprising a pharmaceutically active agent incorporated therein. The medicated gum is used as a means for administering the active agent to a subject. The invention also relates to a method of preparing the medicated chewing gum. The process involves the formation of a cyclodextrin-active agent inclusion complex, which is dried and mixed with a granulated gum base without adding water or other solvents. The process is carried out under controlled temperature and humidity and the blended components are cold-pressed to produce a final gum product.