This study examines the challenges and opportunities in the halal industry in Indonesia, particularly regarding the halal status of pharmaceutical products that use capsules as drug formulations. Indonesia faces significant issues related to the halal status of capsule ingredients, especially gelatin, which is typically derived from pig skin and poses concerns for Muslim consumers due to its haram status. Therefore, the researchers highlight the need for the development of alternative halal capsule materials derived from plants, namely cassava peel starch and carrageenan as raw materials for capsule shells to replace gelatin. This study was conducted at the Integrated Laboratory of the Faculty of Health Sciences, University Darussalam Gontor, over three months. The capsule shells were made from a combination of cassava peel starch and carrageenan in five different ratios: 0.5:3 (F1), 1:3 (F2), 1.5:3 (F3), 0:3 (F4), and 3:0 (F5). Before the capsules were made, the cassava peel starch underwent organoleptic testing, amylopectin testing, cyanide acid testing, ash content testing, and water content testing. The characteristics tested included capsule shell specifications test , and capsule shell moisture content test , capsule shell ash content test, capsule shell disintegration time test . Data analysis using the One Way ANOVA SPSS 16.0 program with a significance level of 95% and a post hoc LSD test to determine the effect of different combinations of cassava peel starch and carrageenan on capsule shell evaluation. The results of the capsule shell specification tests were within the standards of PT. Kapsulindo and the Indonesian Pharmacopoeia, indicating that the moisture content, ash content, and disintegration time met the standards for all formulations. Meanwhile, the specifications for capsule body diameter, cap diameter, and length did not meet the standards; however, formulation 3 showed good potential as it was close to the established standard values, which was attributed to the manual printing process.