Torsemide (1-(1-Methylethyl)-3-[[4-[(3 methyl phenyl) amino] pyridin-3-yl] sulphonyl] urea) is an insoluble loop diuretic drug. Torsemide (TSM) is used for the treatment of oedema associated with heart failure, including pulmonary oedema, and with renal and hepatic disorders. It is also used in the treatment of hypertension, either alone or in combination with other antihypertensive drugs. Complexation of the drug with beta cyclodextrin (β -CD) and hydroxypropyl- β- cyclodextrin (HP- β-CD) was attempted to improve solubility and dissolution rate of torsemide. Inclusion Complexation (IC) is the association between the drug and the used polymer molecules to form a non-covalent complex that has a higher solubility than the used drug itself. The mostly used polymers in the formation of inclusion complexes are cyclodextrins (CDs). CDs comprise a family of water soluble, non-reducing, oligosaccharide which is having the abilities to form inclusions with a hydrophobic drug having low aqueous solubility. The CD molecules are having the versatility nature and have hydrophilic cavities with enough space to incorporate the lipophilic drug as a guest which fits the outer side of the host molecule. Thus the molecular encapsulation of the drug has great improved aqueous solubility and rate of dissolution. The aim of this work was to study the influence of β-CD and HP- β-CD on the dissolution properties of TSM. So, the physicochemical characterization of TSM -β-CD and HP- β- CD binary systems was performed using co-evaporate method for preparation of that systems. Present work includes the preparation of inclusion complex of TSM with ß-CD and HP-β-CD as carriers and to evaluate the formed inclusion complexes for various parameters as drug content, in vitro dissolution study, drug-excipients interaction study using FTIR spectroscopy and DSC method.