Discovery of several poorly water soluble drugs in the past decade has led to the need of developing a novel dosage form which increases the solubility of the drug and improves oral bioavailability. Solid dispersion is one of the most promising techniques to overcome the challenges faced by poor water solubility. However, there are several limitations associated with the development of solid dispersion, like miscibility of polymer and drug, the stability of the dispersion, etc. The use of surfactant in the solid dispersion can overcome these limitations. The addition of surfactant to solid dispersion not only increases drug-polymer miscibility but also reduces recrystallization. It also improves the wettability of solid dispersion, which leads to increase in dissolution and physical stability. However, caution must be employed in selecting the surfactant. The surfactant can interact with polymer and thereby increase the recrystallization of drugs. This review focuses on the use of surfactant in the solid dispersion. First, the classification of the surfactant is discussed along with its use in the formation of solid dispersion by various techniques.