Various methods of modifying solubility and dissolution properties of drugs have beenrndeveloped over the years. Methods such as liquisolid technology, which can be used tornenhance or sustain dissolution, have raised a lot of interest in many researchers. In thisrnstudy different liquisolid compacts of diclofenac sodium containing either propylenernglycol or polyethylene glycol 400 for the enhanced dissolution preparations; andrnPolysorbate 80 as a non-volatile solvent for sustained preparation were prepared using arnmathematical model for calculating required quantities of powder and liquid ingredientsrnto produce acceptably flowable and compressible admixture. Microcrystalline cellulose,rncolloidal silica and sodium starch glycolate were employed as carrier, coating materialrnand disintegrant, respectively. Formulation of liquisolid compacts having various ratio ofrncarrier to coating material (ranging from 10 to 30) and 50 to 70% concentration of liquidrnmedication (drug:non-volatile solvent) were prepared and evaluated for their powder,rntablet property and drug release profile. The liquisolid compacts demonstraternconsiderably higher dissolution rate than marketed tablets. This was due to increasedrnwetting properties and surface of drug available for dissolution. Also it has been shownrnthat the fraction of molecularly dispersed drug in the liquid medication of liquisolidrnsystem was directly proportional to the dissolution rate and the percentage drug dissolvedrnin 10 minute was correlated with solubility of the drug in different vehicle. A plot of thernpercentage drug dissolved against the solubility of diclofenac sodium showed that thernamount of drug dissolved increased linearly with an increase in solubility of diclofenacrnsodium in the vehicle. Diclofenac sodium tablets prepared by liquisolid technique alsornshowed release retardation properties. This study revealed that Polysorbate 80 andrnEudragit® RL has important role in sustaining the release of drug from liquisolidrnmatrices. It is generally proven that liquisolid technique is a promising alternative as arntool to enhance or sustain the release of diclofenac sodium.rnKey words: Liquisolid compact, Diclofenac Sodium, Solubility, Dissolution, Sustainedrnrelease.