The present invention relates to a system and method for the production of gypsum board using starch pellets. In accordance with the present disclosure, the starch necessary for board formation is provided in the form of starch pellets. These pellets are mixed with a gypsum slurry in a mixer. The pellets are initially insoluble and do not dissolve. However, during subsequent drying stages, the pellets become soluble and dissolve into the gypsum phase. This both provides the desired starch component and also results in the formation of voids within the set gypsum.