Oral drug delivery systems show low and erratic bioavailability due to poor water solubility of drugs. This results in therapeutic failure due to great inter- and intra subject variability. The improvement in the bioavailability of poorly water soluble drugs is one of the greatest challenges in drug delivery systems. Oral lipid based drug delivery systems have the potential to increase the drug solubility, enhance GI absorption and eliminate effects of other factors on the absorption of such poorly water soluble and lipophilic drugs thereby enhancing the bioavailability. The application of oral lipid based drug delivery systems provides a superior system over traditional medicines.