Present invention provides for mouth dissolving tablet of Cefdinir or pharmaceutically acceptable salts thereof comprising granules of Cefdinir, Mannitol and Citric Acid wherein granules are prepared by wet granulation method using sucrose solution as binder.Present invention also relates to process for preparation of mouth dissolving tablet of Cefdinir or pharmaceutically salts thereof. Said process comprises dissolving Cefdinir in a solvent containing D-mannitol evaporating the solvent from solution of step i) to obtain dry mass grinding and sieving material of step ii) and blending with citric acid, granulating the blend of step iii) with sucrose solution as binder, blending granules of step iv) with lubricant and sodium bicarbonate compressing blend of step v) into suitable size tablets.