In this study, it was aimed to prepare and evaluate drug-releasing dental implant approach by coating the surface of titanium implants with hydroxyapatite and low molecular weight peptide based N-fluorenylmethoxycarbonyl diphenylalanine hydrogel containing flurbiprofen. The effect of polymers on flurbiprofen release was investigated, the cytotoxic effect by using the [3-(4,5-dimethylthiazol-2-yl)-2,5-diphenyltetrazolium bromide] (MTT) method and the antibacterial activity by using agar diffusion and ASTM 2180-07(2012) Standard Test Method for Determining the Activity of Incorporated Antimicrobial Agent(s) In Polymeric or Hydrophobic Materials methods were investigated. Results showed that, flurbiprofen release was up to 60% at the end of 4 h and completed at the end of 11 h for chosen formulation accompanied with no cytotoxic effect that could be accepted for therapeutic aspects. Investigated formulations were fitted to Korsmeyer-Peppas kinetic model with diffusion/relaxation coupled release mechanism. Antibacterial efficacy of implants showed that the number of colonies decreased gradually at each contact time, resulting an antibacterial rate over 99% at the end of 24 h. It can be concluded, an anti-inflammatory drug releasing dental implant having no cytotoxicity and presented antibacterial effect can be successfully prepared.