Carbamazepine is an anticonvulsant and moodstabilizing drug used in the treatment of epilepsy and bipolar disorder. Certain limitations associated with the oral administration of the drug are poor water solubility, complexity in polymorphism, autoinduction to metabolism, narrow therapeutic window and high therapeutic dosage requirements. It exhibits erratic absorption pattern and non-linear pharmacokinetics. Therefore here, an attempt has been made to develop microwave generated co-processed material of carbamazepine with microcrystalline cellulose (MCC) and novel excipient obtained from outer pericarp of the seeds of the Ocimum basilicum (OB). Developed system showed enhanced dissolution rate of the drug by increasing wettability of the drug as combination of OB and MCC has high hydration capacity due to their swelling and wicking properties respectively. Dihydrate formation of carbamazepine is the main reason for its low solubility in gastro-intestinal tract which is retarded by developed system, observed in-vitro. Such system is devoid of shortcomings of conventional solid dispersion and showed superior pharmacokinetic profile in-vivo compared to marketed product. Co-processed material of carbamazepine is formulated to orodispersible tablet by direct compression method. Thus by simple technique and using novel excipient, attempt has made to decipher problems associated with the oral administration of carbamazepine.