The poor solubility & low dissolution rate of poorly water soluble drugs in the aqueous gastro-intestinal fluids often cause insufficient bioavailability rather than the limited permeation through the epithelia. With recent progress in high throughput screening of potential therapeutic agents, the number of poorly water-soluble drug candidates has risen sharply & formulating for poorly water-soluble compounds for oral delivery now presents one of the most frequent and greatest challenges to scientists in the pharmaceutical industry. Various formulation strategies have been investigated to improve the solubility and the rate of dissolution to enhance the oral bioavailability of lipophilic drugs. This project work has been designed with purpose to improve the water solubility of water insoluble drug Fenofibrate. Poorly water-soluble drugs often require high doses in order to reach therapeutic plasma concentrations after oral administration. Improvement in the extent and rate of dissolution is highly desirable for such compounds, as this can lead to an increased and more reproducible oral bioavailability and subsequently to clinically relevant dose reduction & more reliable therapy.