Water solubility is an essential physicochemical property of drug. For a drug molecule to reach the systemic circulation and to exert the therapeutic effect it must be in aqueous solution form. Solubility and dissolution enhancement of poorly water soluble drug piroxicam is done by formulating bionanocomposites (BNCs) using microwave induced diffusion (MIND) which leads to the enhancement of bioavailability. The BNCs were prepared by using various natural polymers such as Ghatti gum, Acacia and Guar gum with the help of microwave oven. Polymer selection was done on the basis of their surfactant and wetting properties. The studies such as foaming index, swelling index and viscosity determination carried out for characterization of natural polymer. The best ratio of drug to polymer was selected for the optimization of the formulation on the basis of their solubility and dissolution data. The BNCGGPRX showed best results regarding solubility and dissolution enhancement and hence selected for the formulation of tablets. The characterization of BNCs were carried out by Fourier Transform Infrared Spectroscopy (FTIR), Differential scanning calorimetry (DSC), X-ray diffraction study (XRD), scanning electron microscopy (SEM) and Transmission electron microscopy (TEM). The MIND method gives a perfect means of solubilisation by generating drug dispersion at the micro and nanoscale level in natural biodegradable polymer. Hence, this study demonstrates the use of BNCs in solubility and dissolution enhancement.