Abstract: Exemplary embodiment of the present disclosure are directed towards a stable nanodispersion comprising an aqueous dispersion medium, a dispersed phase, a surface active agent and optionally, an additive, wherein the aqueous dispersion medium comprises of a nanodispersion stabilizing vehicle base component, wherein the nanodispersion stabilizing vehicle base component improves long term physical stability of the nanodispersion with or without particle size reduction, wherein the dispersed phase comprises of a bioactive compound and wherein the bioactive compound is a lipophilic and hydrophobic. Another exemplary embodiment of the present disclosure is directed towards a method of preparation of such stable nanodispersion.