Characterization of mefenamic acid-β-cyclodextrin inclusion complexes by freeze drying method had been studied. Solid state mefenamic acid- β-cyclodextrin inclusion complex prepared by freeze drying method in 1:1 molar ratio. Mefenamic acid, β-cyclodextrin, mefenamic acid-β-cyclodextrin physical mixture and inclusion complexes were characterized by Powder X-ray Diffraction (PXRD), Fourier Transform Infrared Spectroscopy (FTIR) , Differential Thermal Analyzer (DTA) and dissolution studies. The results showed the formation of inclusion complex between mefenamic acid and β-cyclodextrin. In vitro dissolution rate studies of mefenamic acid, mefenamic acid-β-cyclodextrin physical mixture and inclusion complex were conducted using basket method and water as dissolution medium. Mefenamic acid-β-cyclodextrin inclusion complex showed increasing dissolution rate compared to mefenamic acid-β-cyclodextrin physical mixture and mefenamic acid.