The present invention provides a drug formulation and a dosage form. The present pharmaceutical formulation comprising a drug compound of low solubility, suitable stabilizer with aqueous vehicle. The method includes, formulating nanosuspension of drug, the size of the drug particle get reduced which results in it"s improved dissolution property. The Furosemide drug formulation of present invention is formulated as nano-suspension and is characterized and evaluated. The drug formulation works to increase the dissolution of hydrophobic drug.