The invention relates to the preparation of a water soluble, powdered pharmaceutically active cannabinoid and/or terpene extract from plant materials, a powder where the bulk density can easily be modified depending on the final dosage form required. The extract is first treated with a solvent to solubilize the cannabinoids, then combined with an emulsifier. The solubilized mixture is then dried to evaporate the solvent, leaving the water-soluble cannabinoid extract powder. The resulting powder remaining stable at room temperature for at least one year and can be compounded into various pharmaceutical powdered formulations, with varying bulk powder densities.
