The use of tubular halloysite clay as a nanotemplate for layer-by-layer (LbL) shell assembly and its utilization for controlled release of drug macromolecules are studied. The LbL nanoshell allowed additional control for the sustained release of drug loaded halloysite tubes. The number of polymeric layers in the shell and molecular weight of the assembled polymers influences the drug release rate. Three bilayer shells of chitosan and gelatin of 15 nm thicknesses gave the best encapsulation and retardation in the release rate of dexamethasone. An encapsulation of the macromolecules inside the lumen of the biocompatible clay nanotubes coupled with the polyelectrolyte shell formation provides a novel formulation for the controlled release of bioactive agents.