The aim of the present study was to prepare solid dispersion (SD) of Lansoprazole (LSP) to improve its saturation solubility and dissolution. SDs were prepared with a hydrophiphilic polymer PEG 4000 and a novel amphiphilic polymer Soluplus®. SD prepared using Soluplus® by solvent evaporation method gave highest saturation solubility. The prepared SD was further characterized by Fourier Transform Infrared Spectroscopy (FTIR), Powder X-Ray Diffraction (XRD), Differential Scanning Colorimetry (DSC), Scanning Electron Microscopy (SEM) and in vitro drug dissolution. FTIR suggested formation of intermolecular hydrogen bonding between LSP and Soluplus®. DSC and XRD studies revealed partial amorphization when compared to pure LSP. The results of in vitro dissoultion in distilled water indicated a remarkable improvement in dissolution from the SD with 100% release in 20 mins when compared with the pure LSP (40% release in 120 mins).