During pre-formulation studies common methods like UV-Spectrophotometric methods, FTIR are used for the study of compatibility. In the present investigation drug-lipid compatibility study was conductedfor Tecomella undulata with lipid mixture by using equal ratio of drug: lipid. Objective of this research work is to examine the chemical constituents present in water soluble fraction of Tecomella undulatabark and check its lipid compatibility in various ratios for preparation of a novel formulation in future prospectus. Aqueous extract of powder drug was prepared by heating it with sufficient distilled water for 1 hour. Prepared extract was used for detection of various chemical constituents and their interaction with lipid substances with help of UV-Visible and Fourier transfer infrared-red spectroscopy. The drug and lipid mixtures were stored at 40°C and 75% relative humidity for predetermined period. The samples were then characterized using UV Spectrophotometric method and FTIR spectroscopy. FTIR spectrum of extract suggests the presence of various phyto-chemicals in extract. FTIR spectrum of mixture of plant extract and lipid constituents showed no overlapping of peaks and no additional peaks after 30 days storage under conditions mentioned in ICH guidelines. The results show that Phytoconstituents of drug were compatible with drug.