The anti-cancer properties of 2-Butyl-3-(3, 5-Diiodo-4-Hydroxybenzoyl) Benzofuran have been determined in earlier in vitro & insilico studies. In the present investigation, an attempt has been made for formulation and evaluation of 2-Butyl-3- (3, 5-diiodo-4- hydroxybenzoyl) benzofuran suspension by adding acacia powder in different ratio in all five formulations. The five suspensions (F1 to F5) of 2-Butyl-3- (3, 5-diiodo-4- hydroxybenzoyl) benzofuran were prepared by using different ratio of acacia powder (1,2,3,4 and 5% w/v). These formulations were evaluated for sedimentation volume, pH measurement, viscosity measurement, particle size, and drug release at various time intervals for 2 months. The 2 Butyl-3- (3, 5-diiodo-4- hydroxybenzoyl) benzofuran was found to be compatible with different excipients. The results of the study indicated on increasing the concentration of acacia powder in suspensions improved the physical stability. Formulation F3 and F5 shows satisfactorily physical stability while F5 containing 5.0% w/v concentration of acacia showed better physical stability, and was found to be optimum concentration. Among the formulated suspensions F5 showed better in vitro drug release profile as well as better physical stability compared to other formulated suspensions.