The objective of the present work was to formulate, develop, and evaluate liquid crystals formulation containing Sulfamethoxazole for oral delivery to deliver in sustain release manner. It sustain release of drug leading to minimize the peak and valley effect in plasma and provide patient convenience. The primary objective of liquid crystals drug delivery system is to ensure safety and to improve the efficacy of the drug as well as patient compliance, by lessen the frequency of dosing. In present study total numbers of nine formulations are prepared while applying the central composite factorial design. The formulation was prepared by magnetic stirrer method using oleic acid as a base. The formulations were then optimized on the basis of minimum particle size and maximum entrapment efficiency. The poloxamer 407 is used as a stabilizer and 2% is used to formulate the optimized batch because this ratio is providing the smaller globule size. It helps to reduce the particle size by the reduction in interfacial tension between aqueous and lipid phase. (Ola, 2016) Optimized batch (F2) dried with the help of a spray dryer