Telmisartan (TEL) is an angiotensin II receptor antagonist used for the management of hypertension. TEL belongs to a BCS class II drug with low water solubility and, thereby, low bioavailability. The present work is focused on improving the dissolution rate of TEL by complexation with modified β-cyclodextrins like such as sulfobutyl ether β-cyclodextrin (SBE7-β-CD) and methyl-β-cyclodextrin (Me-β-CD). The phase solubility studies indicated an AL type curve, so the complexes of TEL with modified cyclodextrin were prepared with a 1:1 molar ratio. The microwave irradiation method was used for the preparation of inclusion complexes. In order to maximize drug content, optimization of the process variables was achieved through the use of response surface methodology involved in the preparation of inclusion complexes. The prepared inclusion complexes of TLE (SMWT 3 and MMWT 3) were characterized. The inclusion complex SMWT 3 showed a 4.13 folds’ increase in dissolution rate, whereas MMWT 3 showed a 3.94-fold increase compared to pure TEL. The FTIR showed no interaction between TEL and modified cyclodextrins. The X-RD and DSC results prove the formation of inclusion complexes and the transformation of crystalline to amorphous TEL during complexation. The SEM images showed that TEL morphology changed completely after complexation. All the results obtained suggest that the preparation of inclusion complexes of TEL with modified β-cyclodextrins is a promising approach for improving bioavailability.