The purpose of the present study was to enhance the solubility and dissolution rate of a poorly water soluble drug by solid dispersion technique. Irbesartan was used as a model drug to evaluate its release characteristics from the formulations. Solid dispersions of Irbesartan with PEG 4000 and PEG 6000 were prepared by physical mixing, solvent evaporation and melting techniques in w/w ratios (drug: carrier). Characterization of the solid dispersions was carried out by Differential Scanning Calorimetry (DSC) and Fourier Transform Infra-Red spectroscopy (FTIR). The dissolution profiles of solid dispersions were compared with those of the pure drug. Solid dispersions of Irbesartan with PEG 4000 prepared by solvent evaporation technique at 1:1 ratio showed greater dissolution compared to other formulations. FTIR and DSC studies showed no significant interaction between Irbesartan and the hydrophilic carriers.