Over the years, inclusion complexation of drugs with β-cyclodextrin has emerged as a viable attempt to improve the dissolution of water insoluble drugs. The aim of the present work was to improve the dissolution rate of Glimepiride, by inclusion complexation with β-cyclodextrin. The stoichiometric ratio determined by phase solubility analysis for inclusion complexation of glimepiride with β-cyclodextrin was 1:1, 1:2, & 1:5. The solubility of glimepiride increased with increasing amount of β-cyclodextrin in water. Complexes of glimepiride were prepared with β-cyclodextrin by kneading method and physical mixture. The complexes were characterized by Fourier-transform infrared (FTIR) spectroscopy, differential scanning calorimetry (DSC), and X-ray diffraction (XRD) patterns. These studies indicated the inclusion of glimepiride in the cavity of β-cyclodextrin. The complexation resulted in a marked improvement in the solubility of glimepiride. An optimum increase in the dissolution rate of the drug was observed at a drug-polymer concentration of 1:5 concentrations. Mean dissolution time of glimepiride decreased significantly after preparation of complexes of glimepiride with β-cyclodextrin.