Famotidine is an antacid drug given orally in management of benign gastric and duodenal ulceration, It is very slightly water soluble. The aim of work is to study the effect of hydrotropic agents (trisodium citrate dihydrate and sodium carbonate) on solubility and dissolution of famotidine. Hydrotropic solubilization technique was used to prepare a soluble form of famotidine using famotidine and trisodium citrate dihydrate in ratio 1:1, famotidine and sodium carbonate in ratio 1:1 and famotidine, trisodium citrate dihydrate, sodium carbonate in ratio 1:1:1. Physical properties, micrometric properties, entrapment efficacy, IR spectroscopy, solubility test and dissolution test were carried to famotidine and the prepared formula. It was found that the formula prepared using famotidine, trisodium citrate, sodium carbonate in ratio 1:1:1 gave the best results in solubility and dissolution so that it can be used as an better alternative than famotidine as it as it exhibits better solubility and dissolution and so; better bioavalability.