The present invention relates to a novel oral pharmaceutical composition in the form of a stable flocculated suspension in water, said composition comprising micronized megestrol acetate at a concentration of 10 to 200 mg per ml, polysorbate at a concentration of 0.01% to 12.6% weight by volume, or polyethylene glycol at a concentration of about 0.01% to 5.0% weight by volume, polyoxyl 35 castor oil at a concentration of 0.05% to 51.5% weight by volume and/or polyoxyl 40 hydrogenated castor oil at a concentration of 0.05% to 45% weight by volume in a stable flocculated suspension in water. The composition also may include preservatives, sweeteners, pH adjusting agents and flavoring agents.