Paclitaxel (PTX) obtained from the bark of Taxus brevifolia (Pacific yew tree) is a well-known potent drug used for treatment of breast, lung and ovarian cancer. PTX is stated to be a novel antimicrotubule agent. PTX acts by assembling the microtubule from tubulin dimmers and stabilizing of microtubules by prevention of polymerization. Thus it affects the cell division of the cancer cells by interrupting the spindle formation. PTX on application in cancer treatment it shows to have low aqueous solubility use of vehicles like Cremophore EL and ethanol, which on application shows hypersensitivity reaction. So to reduce the toxicity due to these vehicles three main dosage forms are seen to be developed for application of PTX in chemotherapy by researchers throughout the world. Namely; Nano-Particle Approaches, Liposomal approach, Solid Dispersion approach. Nanoparticles are utilized for purposes like decreasing toxicity and minimizing adverse effects of drug molecules and enhancing drug release. Liposomes are capable of containing more amount of PTX and are capable of long term stability, toxicity reduction when compared to other dosage form. Solid dispersions are more effective compared to other methods of particle size reduction to improve the drug solubility. So it can be stated that developing dosage forms like these for reduction of toxicity and efficacious application of PTX in chemotherapy is important.