This work aimed to examine how varying concentrations of chitosan affect the physiochemical characteristics, and investigate the solubility and dissolving properties of the solid dispersion system including chitosan and andrographolide. A solid-state dispersion system including andrographolide and chitosan was synthesized using various drug-to-polymer ratios. The obtained data were examined for their morphology, physiological state, medication content, test for solubility, and rate of dissolution. The morphology of the system consists of a solid dispersion of andrographolide and chitosan was found to be spherical based on SEM analysis. The solid dispersion systems had infrared spectra with an absorption profile that closely approximated that of the active ingredient. The differences between DTA and XRD analysis indicated a decrease in both the point of melting and the strength of the crystal. The research found a 1.75-fold rise in the soluble state of the system consisting of solid dispersion of andrographolide and chitosan compared to the solubility of the andrographolide component. Furthermore, the chitosan-andrographolide solid dispersion system exhibited a dissolution rate that was 1.6 times higher compared to that of the pure andrographolide molecule. Increasing the amount of chitosan in the system consisting of a solid dispersion of chitosan-andrographolide resulted in a decrease in the degree of crystallinity as well as the andrographolide melting point. This has a beneficial impact on improving the solubility and dissolving rate of andrographolide. The optimized formulation shows a dose-dependent toxicity against HT29 cell lines.