The term solid dispersion refers to a group of solid products consisting of at least two different components, generally a hydrophilic matrix and a hydrophobic drug. In addition to bioavailability enhancement, much recent research on solid dispersion systems was directed towards the development of extended-release dosage forms. Knowledge about behavior of solid dispersions during preparation, storage and dissolution can help to tackle these problems. A thorough understanding of processes that occurs place on the molecular level is a prerequisite for rational and more efficient design of solid dispersions. However, development of solid dispersions has often been a trial-and-error approach. Solid dispersion prepared by solvent evaporation method were subjected to x ray diffraction study, dissolution study, In the present study, a 32 full factorial design was employed containing 2 factors evaluated at 3 levels and experimental trials were performed at all 9 possible combinations. Two independent variables selected were HPMC E5 and PVP K30. The objective achieved and these findings suggested that the above-mentioned technique can be employed successfully for improvement of solubility profile and stability of Solid dispersions of poorly water soluble drugs.