Erythromycin stearate is a macrolide and belong to one of the most commonly used families ofrnclinically important antibiotics used to treat infections caused by Gram-positive bacteria such asrnStaphylococcus aureus, Streptococcus pneumonia and Streptococcus pyogenes.rnThe objective of this study was to increase the solubility of the poorly water soluble drugrnerythromycin stearate, by the formation of solid dispersion. Solubility is an importantrnphysicochemical factor affecting absorption of drug and its therapeutic effectiveness. In thernpresent investigation, an attempt was made to improve the solubility and dissolution rate of arnpoorly soluble drug, Erythromycin stearate. The dispersion carriers used for the study werernPEG4000, PEG 6000 and PVP K30. Fusion method, Solvent Evaporation method and Kneadingrnmethods in 2:1, 1:1 and 1:2 ratios of drug to polymer were used to prepare the solid dispersion.rnThe formulation were characterized for drug-polymer interaction using FTIR spectrum and DSC,rnsolubility parameters, drug content studies, drug release studies. The interaction studies showedrnno interaction between the drug and the polymers. Formulations containing 1:2 ratio of drug:rnPEG4000, drug:PEG6000 prepared by fusion method showed the best release with a cumulativernrelease of 97.55% and 101.78% respectively as compared to 54.62% for the pure drug. The flowrnproperty studies like angle of repose , hausner's ratio and carr's index showed the solid dispersionrnpreparation had good flow.rnThe practical yield was found to be above 90% for all the formulations. Similarly the drugrncontent was also above 90% for all the formulation except, the solid dispersion prepared byrnkneading method. The XRD studies showed the crystallinity of the solid dispersion reducedrncompared to the drug alone. Drug to PVPK30 1:2 ratio prepared by solvent evaporation methodrnshowed cumulative release of 96.31%. The results of short term stability studies showed goodrnstability within the studied period of 3 months at the temperature 40ï‚°C and relative humidity ofrn75%.