In the present investigation, liquisolid compact technique is investigated as a tool for enhancement of dissolution of poorly water-soluble drug, Deflazacort. Deflazacort liquisolid tablets were prepared using propylene glycol as non-volatile liquid vehicle, microcrystalline cellulose (Avicel PH 102) as carrier material, colloidal silicon dioxide (Aerosil 200) as coating material and sodium starch glycolate as super disintegrant. The prepared liquisolid compacts were evaluated for bulk density, tapped density, angle of repose, Carr‟s index, Hausner‟s ratio, thickness, hardness, friability, weight variation, disintegration, drug content estimation and in-vitro dissolution studies. The formulated liquisolid system of Deflazacort exhibited acceptable flowability and compressibility. FTIR studies revealed that there is no significant interaction between the drug and excipients. The XRD analysis confirmed formation of a solid solution inside the compact matrix. Among all formulations, Deflazacort liquisolid compacts containing 10% drug solution and carrier to coating material ratio of 10:1 (LS2) showed significant higher dissolution rate of 96.46% in 45 min compared to 32.80% in 45 min of conventional tablet. From this study it can be concluded that the liquisolid technique is a promising alternative for improvement of dissolution property of water- insoluble drugs.