The purpose of this study is to give an insight into the significance of pseudoternary phase diagram construction and its evaluation, as an important tool for the development of lipid based selfdispersible oral formulation. This formulation was designed in order to improve the oral efficacy of hydrophobic drug, which display dissolution rate limited absorption. Construction of pseudoternary phase diagram is an important tool for screening of self-dispersible formulation components and to assess the effect of different component on in-vitro performance of formulation. Spontaneity of formulation to convert into nano drug carrier and robustness to dilution inside gastrointestinal lumen is an important aspect of such lipid based formulation to predict its in-vivo performance. Thus our study provides an important tool for designing of lipid based formulation for improved oral delivery of low bioavailable drug.