In the pharmaceutical industry , pellets can be defined a s small, free - flowing, spherical particulates manufactured by the agglomeration of fine powders or granules of drug substances and excipients using appropriate processing equipment. Pelletization has gained a great interest in recent years due to its vario us advantages over other similar techniques; such as uniformity of dose and flexibility in dosage form design. There are a numbe r of pelletization techniques currently used by pharmaceutical industry. Among them Extrusion - spheronization and solution/suspen sion layering are most commonly used in pharmaceutical industries . Other novel techniques include balling, compression, cryopelletization, dry powder layering, hot melt extrusion etc. In thi s review, a brief account of all the important techniques with spe cial reference to extrusion - spheronization and solution layering is included. Extrusion – spheronization is a multistep process involving dry mixing, wet granulation, extrusion, spheronization, drying, and screening; whereas solution o r suspension layering in volves deposition of successive layers of drug and binder solution/ suspension on started seeds, which can be either an inert m aterial or granules of same drug. Every technique has their own advantages and limitations, therefore a thorough understanding of the process variables is important before choosing a pelletization method.