The aim of this study was to prepare and characterize hydrogel based nanocrystals of Quetiapine to enhance the dissolution rate and oral bioavailability. Hydrogel based nanocrystal was prepared by the crosslink method using poloxamer 407 and sodium tripolyphosphate as a polymer. Prepared Hydrogel based nanocrystal was subjected to various evaluation parameters like drug content, solubility studies, pH, density, particle size analysis, viscosity, zeta potential, SEM, In vitro drug release studies. The FT-IR spectral analysis revealed that there was no interaction between the drug and excipients. Based on the results obtained for nanosuspension formulation, QTP24 formulation was successfully studied for hydrogel. The in vitro dissolution rate of Quetiapine was significantly increased by reducing the particle size.