The purpose of the present study was to formulate solid dispersion incorporated mouth dissolving tablet of gliclazide to improve the aqueous solubility, dissolution rate and to facilitate faster onset of action. Solid dispersion of gliclazide was prepared with PVP K30 in different drug:carrier ratio using solvent evaporation methods. Infrared spectroscopy and differential scanning calorimetry were performed to identify the physicochemical interaction between drug and carriers. The optimized solid dispersion (drug: PVP K30, 1:1 ratio) were further used to prepare fast dissolving tablet by direct compression method using superdisintegrants such as sodium starch glycolate and crospovidone. The precompression parameter of powder blends suggested good flowability and compressibility. The prepared tablets were evaluated for thickness, hardness, friability, weight variation, drug content, wetting time, water absorption ratio, in vitro disintegration time and dissolution studies. The batch MD-6 shows highest release of 99.73% in 15 mins. Hence fast dissolving tablets of gliclazide by solid dispersion technique could be used to improve patient compliance towards the effective management of diabetes.