Abstract: The invention relates to a multifunctional fiber rich fraction (FRF) useful as an excipient for pharmaceutical dosage forms for various routes of administration. This excipient can be used as binder, disintegrant, filler, dispersing agent, coating agent, film forming agent, thickener etc for preparation of variety of dosage forms. This FRF can also be used in a controlled release, targeted release and other specialized delivery systems, as well as in food and cosmetics formulation.