The present research work was to develop ketoconazole loaded microemulgel formulation. The main objective was to enhance the penetration capability of ketoconazole by incorporating penetration boosters and to administer the drug in a sustained release fashion. Currently available dermal creams refuse to provide intended action as needed. Screening of oils, surfactants, and co-surfactants was done by the construction of pseudo ternary phase diagrams with 2% ketoconazole. Compatibility studies like FT-IR, DSC were performed to determine incompatibilities. The microemulsion was characterized for droplet size, zeta potential, viscosity , thermodynamic stability. Moreover for enhancement of patient compliance the optimized microemulsion was modified into microemulsion based gel. Ex-vivo studies were carried out for microemulgel using Franz diffusion cell by help of porcine skin membrane.