Disclosed herein is a novel solubility enhancer capable of being employed in formulating safe and effective pharmaceutical formulations of partially soluble drugs, wherein the solubility enhancer is selected from dialkyl substituted amides of fatty acids having C6 to C16 carbon chain, preferably from N,N-dimethyl hexanamide,N,N-dimethyl octanamide, N,N-dialkyl decanamide, N,N-dialkyl dodecanamide or N,N-dialkyl hexadecanamide.