Direct compression method in tableting is widely used due to fewer processing steps, simplified validation, elimination of heat and moisture, economy and improved drug stability. Hence, the current trend in the pharmaceutical industry is to adopt direct compression technology. Most of the drugs do not possess direct compression characteristic. Hence, development of various functionality added excipients (FAEs) to achieve formulations with desired effects is equally important. Excipients with improved functionality can be obtained by developing new chemical excipients, new grades of existing materials and new combination of existing materials. A much broader platform for the manipulation of excipient functionality is provided by co-processing or particle engineering of two or more excipients. The most important approach for controlling price for the excipients is to develop co-processed directly compressible excipients.