Loratadine is a non sedative anti-histaminic drug. Its major use is in control of congestion, sneezing, runny nose and itching that a patient suffers with an allergic attack or an infection. It has poor solubility in water. Therefore, the solubility and drug release were enhanced using the solid dispersion technique and fast dissolving tablet were formulated. Solid dispersion prepared using Poloxamer 407, PEG 6000 and urea. The solid dispersion were evaluated for saturation solubility, drug content and in vitro dissolution study and it was characterized using FT-IR, X-RD, SEM and DSC study. The fast dissolving tablets of loratadine was formulated using crospovidone and crosscarmelose sodium by direct compression method. The tablets were evaluated for thickness, hardness, weight variation, friability, disintegration time and % in vitro drug release. A 32 factorial design was used to study the effect of Loratadine: Poloxamer 407 and crospovidone on disintegration time and % in vitro drug release. The responses were analyzed using ANOVA. The obtained model was validated & optimized formulation was prepared as suggested by the software.