Pioglitazone H Cl is a BCS class-II(poorly water soluble)drug and its absorption is dissolution rate limited. The solubility and the dissolution rate of the drug was enhanced by using the solid dispersion technique. Solid dispersions were prepared using PVP K30,PVP K12,PEG-6000,HPMC 5cps as the hydrophilic carriers. The solid dispersions were characterized by using DSC(Differential scanning calorimetry),XRD(X-ray diffractometry) and FTIR (Fourier transform infrared spectroscopy). Solid dispersions were formulated in to tablets. The solid dispersion tablets enhanced the dissolution rate of the poorly soluble drug. The XRD studies demonstrated the remarkable reduction in the crystallinity of the drug in the solid dispersion. The faster dissolution rate of the drug from the solid dispersion is attributed to a marked reduction in the crystallinity of the drug. The DSC studies revealed the absence of the drug-polymer interaction.