Pioglitazone HCl, a widely prescribed anti diabetic drug belongs to class IΙ under BCS and exhibit low and variable oral bioavailability due to its poor aqueous solubility. Its oral absorption is dissolution rate limited and it requires enhancement in the solubility and dissolution rate for increasing its oral bioavailability. The objective of the study was to screen various oils, surfactants and cosolvents and to formulate and evaluate self emulsifying drug delivery system (SEDDS) with selected vehicle. The highest solubility was observed in labrafac, tween 80 and propylene glycol. Then the feasibility of formulating Pioglitazone HCl SEDDS was evaluated and the effect of dilution on the dissolution rate and dissolution efficiency of Pioglitazone HCl was analyzed. A comparative release study was carried out in SGF and 1 % SLS. Pioglitazone dissolution was rapid from SEDDS and was higher when compared to pure drug. The rate and extent of release of Pioglitazone HCl from stable SEDDS (F1) was high in 1% SLS when compared to SGF. The FTIR spectra proved that there was no chemical interaction between excipients and drug.