Solid dispersions were prepared by both solvent evaporation and physical mixing method for poorly water soluble model drug Alprazolam using carriers such as polyethylene glycol-6000 (PEG-6000) and polyvinylpyrrolidone-K30 (PVP-K30) at different proportions (Drug:carriers-1:1, 1:2, 1:4). The solid dispersions were characterized by solubility, drug content uniformity, dissolution rate, similarity factor analysis and stability after 2 months at 300C/75%RH and 400 C/75%RH. More than 80% of Alprazolam was released within 30 minutes of dissolution and the release was more with PVP-K30 when prepared by solvent evaporation method than prepared by physical mixing. The dissolution data's were fitted in Zero 2 order, First order, Higuchi model and Korsmeyer-peppas equation. All the formulations followed Higuchi model (r >0.96) and the 'n' values were within 0.5 to 0.95, which indicates anomalous transport. The formulations containing drug and PEG-6000 and PVP-K30 at 1:1 revealed similar dissolution profile with theoretical dissolution. The stability study indicates condition of 300 C/75%RH as suitable for solid dispersion storage. Tablets were prepared from selected solid dispersions and subjected to various quality control tests. Keywords: Solid dispersion, Similarity factor, Alprazolam