Usnic acid, a compound produced by Usnea sp, has been reported for anti-oxidant activity. However, the use of usnic acid is still finite due to poor solubility in water. One of the processes to increase the solubility is by preparing into solid dispersion using hydrophilic polymer. The aims of this study were to prepare usnic acid in solid dispersion using poly-vinyl-pyrrolidone (PVP) K30 and evaluate its antioxidant activity. Solid dispersions were prepared using spray and freeze-drying method at a ratio of usnic acid:PVP of 1:1 and 1:2 (w/w). The physical mixture at the same ratio was prepared as a comparison. The morphology of solid dispersion, which was depicted in scanning electron microscopy (SEM) analysis, showed rod crystal for usnic acid; sphere particles for PVP K30 and spray dried powder; porous particles for freeze-dried powder, and usnic acid embedded on the surface of PVP K-30 for the physical mixture. The amount of usnic acid dissolved in water was determined using a UV-Vis spectrophotometer. Freeze dried usnic acid-PVP at ratio 1:2 showed the highest solubility which was about 20-fold compared to intact usnic acid. Antioxidant activity was determined using the 2,2-diphenyl-1-picrylhydrazyl (DPPH) method and gallic acid was used as the reference. The result of antioxidant activity test showed the inhibition concentration 50% (IC50) were 12.471, 80.242 and 63.867 µg/ml for gallic acid, intact usnic acid and freeze-dried usnic acid at ratio 1:2, respectively. In conclusion, solid dispersion is able to increase the solubility of usnic acid and the antioxidant activity is in accordance with the solubility result.