Itraconazole is a potent triazole antifungal drug which has low solubility at physiological pH conditions. It is active in vitro against a wide variety of fungi with a spectrum of activity which qualitatively resembles that of ketoconazole, the first oral azole to gain widespread acceptance. Itraconazole binds more avidly to fungal cytochrome P-450 than does ketoconazole and unlike ketoconazole, has little effect on mammalian cytochrome P-450 enzyme systems.The purpose of present work was to explore the feasibility and preparation of the Itraconazole Hydrochloride salt to improve the solubility and dissolution rate of poorly soluble drug Itraconazole. Itraconazole Hydrochloride was synthesized by using addition reaction with hydrochloric acid. Then it was incorporated into a new derivative of cyclodextrins Sulfobutyl ether β-Cyclodextrin (CAPTISOL) and 2-Hydroxypropyl β-Cyclodextrin by using physical mixing, kneading and co-evaporation techniques. The solubility of prepared salt was found multifold than the solubility of itraconazole. The dissolution studies of itraconazole complexes exhibited high percentage drug dissolution than that of the pure drug which can be attributed to the increase in drug solubility provoked by the complexation technique. The results indicated Itraconazole HCL-Captisol (1:2 molar ratio) prepared by kneading method shows better characteristics when compared with pure drug and other formulations.