Disclosed is a modified release dosage form of tacrolimus comprising at least two dosage units wherein at least one dosage unit is an immediate release dosage unit and at least second dosage unit is a delayed release dosage unit wherein said immediate release dosage unit comprises first amount of tacrolimus in an amount of about 10 percent w/w to about 70 percent w/w of the total amount of tacrolimus and one or more excipients selected from group of water soluble carrier, fillers, diluents, binders, disintegrants, stabilizers, surfactants, wetting agents, buffering agents, preservatives, absorption enhancers, wicking agents, glidants, lubricants and solvents and wherein said delayed release dosage unit comprises second amount of tacrolimus in an amount of about 30 percent w/w to about 90 percent w/w of the total amount of tacrolimus, a delayed release material and one or more excipients selected from group of water soluble carrier, fillers, diluents, binders, disintegrants, stabilizers, surfactants, wetting agents, buffering agents, preservatives, absorption enhancers, wicking agents, glidants, lubricants and solvents and solvents. Tacrolimus is used to prevent transplant rejection in patients.