The attempt has been made to compare the aqueous solubility and dissolution characteristics of Aceclofenac (ACE) enhanced by solid dispersion technique using several water soluble carriers PEG 6000, β-Cyclodextrin (β –CD) and Sodium Carboxy methyl cellulose (Na-CMC). Solid dispersions of ACE were prepared with solvent evaporation method. Solid dispersions with carriers were prepared in drug: carrier (1:1, 1:2, 1:3 and 1:4) ratios. The prepared dispersions were evaluated by solubility, in vitro dissolution studies and X-Ray diffraction studies (XRD). The results from XRD analysis showed that ACE might exist in an amorphous state in the solid dispersion. Considerably improved dissolution profile was obtained by PEG ratios (1:2), whereas there was no significant improvement in dissolution of ACE along with β-CD at higher carrier ratios. Na- CMC showed least dissolution improvement among all carriers. The solid dispersion prepared as AC: PEG 6000 (1:2), exhibited the fastest dissolution among all solid dispersions, was formulated into tablets using direct compression method and further compared with immediate release marketed brands of ACE. The results indicated that formulated tablets displayed better dissolution profiles as compared to existing commercial tablets.