The development of pharmaceutical formulations for drugs with poor water solubility presents significant challenges in achieving desired therapeutic outcomes. These drugs have limited solubility, which result in suboptimal bioavailability, reduced stability, and compromised efficacy. To overcome challenges, formulation strategies required to enhance drug solubility, stability, and bioavailability. Several approaches explored in pharmaceutical formulation design to address the solubility issues with poorly water-soluble drugs. These approaches particle size reduction, solid dispersion, lipid-based formulations, cyclodextrin complexation, and nanotechnology-based delivery systems. Particle size reduction techniques, such as micronization and nanonization, can significantly increase the surface area and improve dissolution rates, thereby enhancing drug solubility. Techniques such as hot melt extrusion and spray drying help disperse medications with low solubility into waterloving carriers, which boosts their solubility and ability to dissolve. Formulations that are lipid-based, like self-emulsifying drug delivery systems (SEDDS) and lipid nanoparticles, can optimize solubility and absorption of drugs by taking advantage of naturally occurring physiological pathways connected to lipid digestion and absorption. Furthermore, cyclodextrins have the capability to form complexes that aid in the increased solubility and preserving stability of medications that have little water solubility