The invention relates to nanocrystal of hydrophobic drugs with low solubility to enhance solubility thereby to improve the dissolution, absorption and bioavailability. The invention provides nanoscopic drug crystals of average particle size less than 1 mm in semi crystalline or partially amorphous or amorphous form, re-crystallized from drug solution in presence of stabilizer. The invention is further directed to cost effective process of preparing, processing parameters, physical characteristics, better dissolution, compositions and method of use of drug nanocrystals.
