In the present study, the potential of liquisolid systems to improve the dissolution properties of poorly water soluble agents was investigated using Aceclofenac. Aceclofenac is a Non steroidal anti-inflammatory drug used orally for treatment. According to BCS, Aceclofenac is class II compound i.e. poorly water soluble. The in vitro release pattern of LS compacts and directly compressed tablets were studied using USP-II apparatus. Different LS compacts were prepared using a mathematical model to calculate the required quantities of powder and liquid ingredients to produce acceptably flowable and compressible admixture. Avicel PH 102, Aerosil 200 and Sodium starch Glycolate were employed as carrier, coating material and disintegrant respectively for preparing LS comp. The prepared LS compacts were evaluated for their flow properties such as bulk density, tapped density, angle of repose, Carr’s compressibility index and Hausner’s ratio. Liquisolid compacts demonstrated significantly higher drug release rates in dissolution media compared to tablets prepared by the direct compression method. This was due to an increase in wetting properties and surface of drug available for dissolution.