The compound, 4-methyl 3-phenyl 2-thiocarbamoyl -3,3a dihydropyrazolo [3,4c] pyrazole has been synthesized starting from 5-methyl-2,4-dihydro-3H pyrazol-3-one and benzaldehyde in its purest form. Since the compound formed is having poor solubility in polar medium, its inclusion complex has been prepared with β-cyclodextrin so as to improve its solubility and bioaccessibility. The formation of inclusion complex has been ascertained by changes in melting point and spectral characteristics. The determination of thermodynamic stability constant and free energy of activation suggest the inclusion complex formation is the thermodynamically allowed and the complex formed is stable.