Because of low aqueous solubility and slow dissolution rate, cantharidin has a low oral bioavailability. Our research aims to prepare the inclusion complex of cantharidin and b-cyclodextrin (b-CD) and accomplish characterization, in vitro and in vivo evaluation. CA-b-CD inclusion complex was prepared by saturated solution method. The CA was demonstrated by HPLC in vitro experiment and by GC-MS in vivo experiment. CA-b-CD inclusion complex was characterized by differential scanning calorimetry (DSC), X-ray diffractometry (XRD), and nuclear magnetic resonance (NMR). Through complexation with b-CD, the solubility of CA in neutral aqueous solution was improved significantly. CA-b-CD inclusion complex also shows a significantly improved dissolution rate in comparison with free CA. Comparison of the pharmacokinetics between CA-b-CD inclusion complex and free CA was performed in rats. The in vivo results show that CA-b-CD inclusion complex has earlier t max , higher C max, and higher bioavailability than free CA after oral dosing. By comparing the AUC 0-t of CA and CA-b-CD inclusion complex, the relative bioavailability of CA-b-CD inclusion complex to free CA was 506.3%, which highlighted the evidence of significantly improved bioavailability of formulation of CA with b-CD. Thus, this b-CD-based drug delivery system should be an effective oral dosage form to improve oral bioavailability of CA.