The aim of this research is to develop nanosponges and determine their appropriateness for delivering Luliconazole to the skin in order to enhance its therapeutic impact and ensure better dispersion and preservation. Because nanosponges are water-soluble, water cannot chemically broken down it into its constituent molecules, but rather the nanosponge particles are combined with water and employed as a carrier fluid. Nanosponges are superior to conventional medication delivery techniques in a number of ways. The emulsion solvent diffusion technique was used to develop a nanosponge using ethyl cellulose as the polymer and polyvinyl alcohol as the surfactant. Nanosponges were evaluated for drug content, entrapment efficiency, etc. Based on the results optimized batch of nanosponge is chosen further to develop as a gel. The produced gel was assessed for pH value, viscosity, spreadability and in vitro diffusion studies. Results showed that NS8 batch was best optimized with highest drug content, entrapment and % yield however NG2 batch of gel showed best performance and followed for stability study.