Melt granulation has gathered increasing interest in the pharmaceutical industry for the concept of utilizing a molten liquid as a binder. Melt granulation process is currently applied in the pharmaceuticals for the manufacture of variety of dosage forms and formulation such as immediate release and sustained release pellets, granules and tablets. This technique has been used for improving bioavailability of poorly water soluble drugs. The review article gives updates about the latest developments in technology behind use of melt granulation process. Article deals with in depth basic information about granule growth mechanisms during melt granulation. The article also provides an insight to Equipments and factors influencing the melt granulation process & its applications to improve the dosage form characteristics which are utilized for industrial production.