Am currently developing an application in Laravel 4.
After proper database normalization the required number of tables for my application increased to about 48 tables.
Am worried so I will like to ask you experienced guys for advice or suggestions.
Number of tables does not really make that much of a difference. There are few tuning things which can be done to help but ~25 is not going to be an issue for MySQL.
I also would NOT HAVE a separate database, this will mean you can't do table joins or foreign keys across the data.
I would go with your current design, and when needed ask some questions for optimisation.
I have seen MySQL deployments with ~500 tables, just to put your mind at rest.