Pelletization process first came into existence way back during the 1950s, when the first product was introduced to the market. These pelletized dosage forms have gained popularity considerably from then because of their distinct advantages, such as ease of capsule filling because of better flow properties of the perfectly spherical pellets; enhancement of drug dissolution; ease of coating; sustained, controlled, or site-specific delivery of the drug from coated pellets; uniform packing; even distribution in the GI tract; and less GI irritation. Pelletized dosage forms can be prepared by a number of techniques, including drug layering on nonpareil sugar or microcrystalline cellulose beads, spray drying, spray congealing, roto granulation, hot-melt extrusion, and spheronization of low melting materials or extrusion-spheronization of a wet mass. The present review outlines the recent findings on the manufacturing and evaluation of spherical pellets. The techniques namely extrusion-spheronization, hot melt extrusion, freeze pelletization, cryopelletization have been discussed along with formulation requirements for the process, parameters affecting pelletization. Evaluation of quality of the pellets is discussed with reference to the size distribution, shape, surface morphology, specific surface area, friability, tensile strength.