The primary objective of this investigation was to improve the aqueous solubility as well as dissolution rate of Azithromycin using Mannitol and Povidone K30 for formulating solid dispersions of the drug. Various by weight ratios (1:1, 1:2 & 1:3) of the drug and carrier were used in kneading and melt agglomeration methods for formulating the solid dispersions. Solubility study was performed in distilled water while the dissolution studies were carried out in phosphate buffer pH 7.4. The differential scanning calorimetry theromogram revealed that no interaction between the drug and the carriers occurred. The SD was able to improve the solubility of AZI from around 4 to 16 times. The formulation F7 (1:1, Povidone K30, kneading) released minimum AZI (16.43 % ± 0.709 %) while F6 (1:3, Mannitol, melt agglomeration) released the highest amount of AZI (84.23 % ± 1.677 %) after 30 min of dissolution study. Our results led to the conclusion that the aqueous solubility and dissolution rate of Azithromycin could be effectively enhanced using Mannitol and Povidone K30 as carriers for solid dispersion. Furthermore, the simplicity of the methods used for formulating the solid dispersion meets the objectives of the study.