Carbamazepine (CBZ) is an anti-epileptic drug (BCS Class Ⅱ) and is widely used in the treatment of epilepsy and neuropathic pain. This drug is having low solubility in biological fluids, which results poor bioavailability (BA) after oral administration. So, the aim of present work is to enhance the solubility and dissolution rate of CBZ by using solid dispersion techniques. CBZ improves the solubility by Melting method, Solvent evaporation method and co-grinding method of solvent dispersion technique. These methods were prepared by using PEG 6000 in different concentrations i.e,(1.01, 1:03,1:05,1:07,1:09). FTIR and DSC are used to determine any compatibilities present in between drug and excipients. For the developed formulations evaluation parameters like %weight variations, Hardness, Friability was performed. FTIR and DSC show that the drug was stable in solid dispersions and there was no interaction. The In-vitro drug release for F3 formulations was found to be 80.13% in 12 hrs which was prepared by melting method. The In-vitro drug release for marketed tablet (Tegretol) was found to be 77% in 12 hrs. The obtained best formulation shows better release than marketed tablet i.e, (Tegretol ER). In-vitro drug release kinetics of best formulation follows the zero order and non-fickian transport mechanism. The prepared solid dispersions were observed that increased in the saturation solubility and dissolution rate of CBZ than that of pure drug. The present study concluded that formulation of CBZ extended-release tablets by melting method in solid dispersion technique were is highly effective for enhancing solubility of the drug.