Development of amphiphilic drug-lipid complexes is a potential approach for improving delivery of the drugs by increasing solubility, release profile and oral bioavailability. Rutin, a polyphenolic flavonoid, shows several biological effects like capillary protectant, anti-oxidant, anti-inflammatory, anti-aging, cardio-protective, anti-thrombotic and neuroprotective, but its use is limited due to its low aqueous solubility. To overcome this limitation, phospholipid complex of Rutin was developed to improve its aqueous solubility for better absorption through the gastrointestinal tract and this might result in improved bioavailability. The Rutin phytosomes prepared by solvent evaporation method using different ratios of Rutin and Soybean phosphatidylcholine (1:1, 1:2 and 1:3) was evaluated for percentage yield, compatibility studies by infra-red spectroscopy, particle size, poly dispersity index, zeta potential, drug content and were found to be within the acceptable range. Surface morphology by scanning electron microscopy, solubility studies, in-vitro drug release and stability studies also were carried out. The phospholipid complex of Rutin was found to be fluffy and porous with rough surface. The water solubility of Rutin was improved from 0.058mg/ml to 0.475 mg/ml in the prepared Phytosomes. The in-vitro drug release studies showed that there is no drug release from pure drug and F1 formulation up to 120min in acidic buffer pH 1.2; while in phosphate buffer pH 7.4 showed releases about 49.3% and 92.85% respectively, which indicates the significant enhancement of dissolution of Rutin phytosomes compared to pure drug. Stability studies suggested that the formulations were stable. In this study, Phytosomes could be successfully tailored for Rutin with improved dissolution characteristics which is promising for lowering the influence of exogenous factors and increasing drug delivery.