The crude ethanolic extract of Capsicum frutescens fruit was used in the formulation of larvicidal granules. The extract was first screened for phytochemical content and larvicidal activity against Aedes aegypti. Five trial formulations were developed using different combinations of excipients identified to be compatible with the active extract. These formulations were evaluated using Quality by Testing (QbT) Method (organoleptic evaluation, moisture content, powder flow property, particle size distribution, dissolution in water and larvicidal bioactivity). The C. frutescens extract (500 ppm) killed 100% of the test larvae after 24 and 48 h. Phytochemical analysis revealed the presence of steroids, indoles, alkaloids, flavonoids, sugars, coumarins and anthraquinones. Among the formulations tested, formulation # 5 (25% extract, 59% lactose, 1% 5% PVP-ethanol solution, and 15% microcrystalline cellulose (MCC) was the most active, with LC50-24 h=108.68 ppm, LC90-24 h=233.44 ppm, LC50-48 h=102.68 ppm, and LC90-48 h=182.50 ppm. Larvicidal granules (Formulation #5) against A. aegypti were developed. The granules were able to kill 100% of the test larvae after 24 and 48 h of exposure. In addition, the formulation passed all the quality control measurements (low moisture content, excellent powder flow, soluble in water, and 90% cumulative frequency within 0.420–0.841 mm).