Aim: The present work focused on to formulate, evaluate and optimize lipid based nanoemulsion of orlistat to enhance drug release. Materials and Methods: Nanoemulsion was prepared using Olive oil, Tween 80, and Distilled water as components. Lipid based nanoemulsion was evaluated for its pH, Rheology study, zeta potential, conductivity, particle size analysis, transmission electron microscopy (TEM) and stability. Central composite design was utilized for the optimization purpose. Formulation variables such as the concentration of Oil (ml) (X1) and Water (ml) (X2) were investigated for their effect on viscosity (Y1) and drug content (Y2). Optimized formulation evaluated for the various parameters. Result and Discussion: The responses Y1 and Y2 for the optimized formulation were found to be 0.167 cps and 99%. Orlistat release from the optimized formulation was faster than other formulations obtained from DOE. Increased in vitro drug release of the drug from lipid based nanoemulsion suggests that the nanoemulsion could serve as potential formulation strategy for Orlistat. Conclusion: The lipid based nanoemulsion can be used as a possible alternative to traditional formulations of orlistat to improve its dissolution rate leading to enhanced bioavailability.