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Water-dispersible pharmaceutical compositions of hydroxychloroquine sulfate in powder or granule form are provided that allow for ease of preparation of measured-dose, liquid suspensions that are palatable and suitable for pediatric administration. The compositions in granular or powder form are efficiently dissolvable in water and can be provided encapsulated within a two-piece releasable hard capsule or a packet or pouch for easy release. An ion-pairing agent is present in the formulation of the composition that masks the bitter taste of the hydroxychloroquine sulfate, significantly reducing the need for addition of a sweetening agent. Methods are provided for preparing the water-dispersible pharmaceutical compositions of hydroxychloroquine sulfate and for preparing palatable weight-based pediatric doses.