The invention relates to compositions comprising lipophilic active, effective amount of an absorption augmenting agent and suitable excipients and the process for preparation thereof More particularly, the fine free flowing powder composition described herein is comprised of effective amount of lipophilic active such as coenzyme Q10, absorption augmenting agent and other suitable excipients which is formulated by emulsification and size reduction. The size reduced emulsion is spray dried to get fine free flowing powder of lipophilic active which may be further filled in sachets or formulated into solid dosage forms or suspended in oil medium. Oil suspension can be encapsulated in soft gel capsules and/or filled in sachets and is useful for treatment of health ailments. Use of salacia as absorption augmenting agent in coenzyme Q10 formulation resulted in more than 2 times enhanced bioavailability in aqueous medium as compared to unformulated coenzyme Q10.
