The aim of this study was to develop a lipid based formulation for a poorly soluble drug belonging to BCS Class II. The intention of the formulation design was to develop a "self eroding matrix system" made of lipidic excipients which would release the drug mainly by the mechanism of erosion. To attain such as system, lipidic excipients like stearic acid and hydrogenated castor oil were used as matrix formers and surfactants like sodium lauryl sulphate and gelucire 44/14 were used as matrix modifiers. The formulations prepared were subjected to physicochemical and in vitro dissolution and erosion studies.