Solid dispersions of acyclovir in PEG 6000 and PVP K30 containing five different ratios were prepared by the solvent evaporation method. Inclusion complexes were prepared by kneading method by dissolving acyclovir and β-CD, HP β-CD at 5 different ratios in distilled water. The optimized batches of solid dispersions (AS4, BS5) and inclusion complexes (CI5, DI5) of acyclovir were analyzed by IR spectroscopy, SEM and DSC. The dissolution studies for solid dispersions (AS4, BS5) and inclusion complexes (CI5, DI5) were performed in 0.1 N HCl and PBS pH 7.4 for all optimized batches. The solubility of acyclovir was found to be more with inclusion complexation method as compare to solid dispersion technique. Hence, the results showed that hydroxypropyl β-cyclodextrin inclusion complex could possibly improve the dissolution characteristics of acyclovir and would provide better bioavailability as compare to conventional dosage form.