SMEDDS are formulated to improve the oral bioavailability of lipophilic drugs. It is an isotropic mixture of compounds like oil, surfactant, co-surfactant, and drug having the unique ability to form fine o/w micro-emulsion by agitation and diluted with GI fluid. Its liquid formulation technique enhanced the absorption and bioavailability of poorly watersoluble drugs but also had a few drawbacks like long time period stability issues and storage conditions. Some special techniques convert the liquid form into solid dosage form to overcome these problems. The present paper gives exhaustive information about formulation design by screening excipients. We study the selection and solubility of excipients, its preparation and characterization, and the mechanism by which bioavailability can be improved. This discussion is useful for a better understanding of SMEDDS for its recent advancements, marketed formulation, and patents on SMEDDS. The poorly water-soluble drugs having dissolution rate absorption limited can be effectively formulated in the form of SMEDDS causing a stable plasma profile. The plasma levels of the poorly aqueous soluble medicament show the critical passage of drug absorption, i.e., dissolution. Surfactants with a high HLB value, such as Tween 80 are said to increase the permeability of active ingredients when administered in conjunction with the formulation due to their loosening effect on tight junctions.