An osmotic device is disclosed for delivering two beneficial drugs to an environment of use. The device comprises a wall surrounding a lumen divided into a first compartment containing a drug that is separated by a hydrogel partition from a second compartment containing a different drug. An orifice through the wall communicates with the first compartment for delivering drug formulation from the first compartment, and another orifice through the wall communicates with the second compartment for delivering drug formulation from the second compartment. In operation, drug formulation is dispensed separately from each compartment by fluid being imbibed through the wall into each compartment at a rate controlled by the permeability of the wall and the osmotic pressure gradient across the wall against the drug formulation in each compartment thereby producing in each compartment a solution containing drugs, and by the expansion and swelling of the hydrogel, whereby drug formulation is dispensed through their orifices at a controlled and continuous rate over a prolonged period of time.