This review discusses the importance of drug solid–state properties and of solubility and dissolution measurement for the identification of appropriate formulations/formulation strategies and highlights their impact on drug disposition and candidate selection. Common elements of solubility/dissolution protocols are presented and the methods addressing equilibrium, apparent, kinetic, and intrinsic solubility, as well as powder and intrinsic dissolution are discussed. Tools for drug categorization (BCS, BDDCS) and estimation of oral drug absorption (MAD) are assessed. A detailed description of available formulation approaches is provided, including improvement of drug dissolution rate and/or apparent solubility, drug solubilization approaches, and inhibition of drug precipitation.