Poor water solubility has always been one of the most fundamental problem in drug delivery. It is estimated that around 40% of drugs in the pipeline cannot be delivered through the preferred route or in some cases, at all owing to poor water solubility. Different methods available to improve solubility and dissolution include salt formation, micronization, chemical modification, pH adjustment, solid dispersion, complexation, hydrotropy, micellar solubilisation. Among these, solid dispersions have proved to be a successful strategy for enhancing aqueous solubility of drugs. The present review focus on different solid dispersion techniques used for the improvement of solubility and dissolution rate of poorly water soluble drugs, carriers used, advantages and limitations of each technique.