A new kind of gastro-retentlve dosage form for drugs with poor aqueous solubility was developed and evaluated, with the aim of achieving gastro-retention, enhancing aqueous solubility and achieving controlled release of the active. Furosemide with an absorption window in the upper gastro-intestinal tract and limited aqueous solubility was selected as the model drug and was enhanced by preparing a self microemulsifying drug delIvery system (SMEDDS) of furosemide. The idea generated in the present study can be used as a general model for designing gastro retentive dosage forms of drugs with limited solubility.