The present invention provides oral dosage formulations of efavirenz useful in the prevention or treatment of HIV infection and process for preparing them. More particularly, the present invention is directed to improved oral dosage form of efavirenz which is prepared by wet granulating efavirenz, a disintegrant and other excipients in the presence of aqueous solution of sodium lauryl sulfate, drying the granules at a temperature of about 25°C to 45°C, dry blending, lubricating with pharmaceutical^ acceptable ingredients and compressed into tablets or filled in capsules.
