Numerous fungi have been found to be involved in human infection. Infectious diseases rank second globally in terms of cause of death, after cardiovascular diseases. One innovative method and great option for drug delivery is the use of aquasomes, which are self-assembling nanoparticulate carriers. Thus this study aims at development & characterization of aquasome of itraconazole for improved antifungal effect. In total six formulations of itraconazole containing aquasome were prepared. The vesicle size ranged from 120.32nm to 165.20nm while the surface charge varied from -26.65 mv to -38.74mv. Further it was observed that highest entrapment efficiency was associated with F3 formulation which is 74.65±0.22%. The In vitro drug release study of prepared Aquasomes suggested that about 98.78% drug is released in 12 hours. According to drug release kinetics study the R2 value for zero order, first order, Higuchi and Korsmeyer estimated to be 0.937, 0.812, 0.994, and 0.651 respectively. Thus from obtained R2 value it is clear that the itraconazole containing aquasome follows Higuchi release kinetics. Beside this the antimicrobial activity of aquasome is checked by well diffusion method. The zone of inhibition for 2.5mg/ml, 5 mg/ml and 10mg/ml was noted to be 8±0.74mm, 10±0.57mm, and 12±0.86mm respectively. The results from the antimicrobial activity indicated that prepared aquasome have potent anti-fungal activity. Along with that stability studies were carried out. The formulation was found to be stable for three months when kept at 4.0 ±0. 2°C. Thus, the aquasome are attractive vehicles for the delivery of a variety of conformationally sensitive compounds that exhibit enhanced biological activity.