The present research study was to develop a nanoemulsiongel formulation for topical drug delivery for effective treatment of various topical fungal infections and improve the solubility of poorly water soluble drug i.e. Terbinafine hydrochloride. Theseformulation compose of Terbinafine Hcl as API and Oleic acid as a oil phase, tween 80 as surfactant, ethanol, PEG-400, Propylene glycolusing different co-surfactatnts by using Ultrasonichomoginization technique. The all nanoemulsionswere characterized for appearance, pH, % Drug content,% Drug entrapment efficiency and in-vitro drug diffusion study; based on these results optimized batch were evaluated for SEM-TEM, Zeta Potential, and stability study. These optimized nanoemulsion were converted to gel using carbapol 940 as a gelling agent; followed by characterization of gel for viscosity, spread ability, pH, in-vitro drug diffusion and accelerated stability study.