The present investigation was to formulate and evaluate fast dissolving tablets (FDT) of Pioglitazone hydrochloride. To improve patient compliance, mouth dissolving tablets have emerged as an alternative to conventional dosage forms. Pioglitazone hydrochloride and Sulfonylurea are given in combination for treatment of type 2 Diabetes Mellitus for long term therapy. During this therapy, it is observed that there is uncontrolled increase of blood glucose level, and the drug undergoes hepatic metabolism. Therefore, mouth dissolving tablets of Pioglitazone hydrochloride were prepared to overcome this unusual problem and to make use of the inherent advantages of the novel drug delivery system. The tablets were prepared by using direct compression method using Superdisintegrants. Pioglitazone hydrochloride mouth dissolving tablets containing Cross povidone & Cross carmellose sodium in the ratio 1:1 showed maximum drug release. Formulations were subjected to stability studies. Formulations are stable for 28 days at 40oC / 75 % RH with insignificant change in the hardness, disintegration time and in vitro drug release pattern.