In my django application the user will enter some characters in the text box
and based on the characters i need to supply the common words from english dictionary and suggest that to the user.
Is ther any common english dictionary database available or some sort of api from any other site which can accomplish the task
It sounds like you are looking for a program that can find anagrams. Here is a non-django solution. It uses /usr/share/dict/words as suggested by Joel.