First part of work was focused on effect of equipments on stability and dimension characteristics of glycerol monooleate dispersion, while second part was focused on to study effect of formulation parameters on the characteristics of dispersion by applying 42-factorial design at fixed ratio (1:5) of dispersed phase to dispersion medium. In this work lipid was dispersed in previously prepared PVA solution with the help of different equipments. Rest of batches was prepared by using selected equipment. Stability study was conducted using Thermo lab humidity chamber. Finally selected batches were subjected for transmission electron microscopy and X-ray diffraction study to investigate the structure. Propeller stirrer followed by homogenizer (volume mean diameter 1.42 ìm and no phase separation were found), was the best equipment. Concentration of GMO was significant for %fraction of large particles, %lost on paddle, % water lost and volume mean diameter, but not for % recovery while concentration of PVA was significant for % recovery , volume mean diameter, % water lost , %lost on paddle, but not for %fraction of large particles.