The aim of present work was to enhance the solubility and dissolution rate of poorly water soluble drug, racecodotril by solid dispersion methods. In the present work, solid dispersion of racecadotril were prepared with a carriers like poly vinyl pyrrolidone K30 (PVP K30), polyethylene glycol 6000 (PEG6000) and poloxamer 188 by using kneading, melting, solvent evaporation, freeze drying and physical mixing methods in the 1 : 1, 1 : 2, 1 : 3, 1 : 4 ratios of drug and carrier, respectively. The formulations were further characterized for drug content, solubility, drug release studies. The interaction between drug and carrier was evaluated by using Fourier transform-infra red (FTIR) and Differential scanning calorimetry (DSC) studies. Powder X-ray diffraction (PXRD) studies were also carried out to find out the crystallinity of solid dispersion. All the prepared solid dispersions were found to be fine free flowing powders and drug content was uniform in all formulations. Solubility studies were performed using the distilled water and buffer pH 1.2. It was observed that the solid dispersions have highest solubility compared to pure drug and physical mixture in both medium. The dissolution tests were performed using the USP dissolution apparatus type-I (Basket) in acid buffer solution pH 1.2 for 1 hour. The dissolution rates of racecadotril solid dispersions were much higher than the corresponding physical mixture and pure drug. The results of FTIR revealed that there was no existence chemical interaction between the drug and carriers. The PXRD studies showed that the drug was in amorphous state completely entrapped by the carriers.