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The solubility behaviour of drug is one of the most challenging aspects in formulation development. Thus a greater understanding of dissolution and absorption behaviour of drug with low aqueous solubility is required to successfully formulate them into more soluble and hence bioavailable drug product. Therefore different approaches are being explored to enhance the solubility of poorly water soluble drugs, one of such approach is using different solid dispersion techniques. This article reports different types of solid dispersion, various solubility enhancement strategies in solid dispersion, advantages of solid dispersion over other techniques and applications of solid dispersion. The approaches described are fusion (melting), solvent evaporation, lyophilization (freeze drying), melt agglomeration process, extruding method, spray drying technology, use of surfactant, electro static spinning method and super critical fluid technology.