Objective: The aim of this study is to formulate and evaluate nanoemulgel for topical application. From all other topical drug delivery systems, nanoemulgel systems are attractive due to enhanced skin permeation potential and minimum toxicity. Nanoemulgels contain both gelling agents and nanoemulsion and are able to enhance skin permeation with sustained effects at the site of application. Methods: Drug-excipients compatibility study was performed by FTIR. At first nanoemulsions are formulated by the homogenization method. Nanoemulsions preparations were characterized for its particle size, polydispersity index, SEM, TEM, pH, drug content, and In-Vitro drug diffusion study, etc. Based on results obtained by in-vitro drug diffusion study optimized batch was converted to nanoemulgel using gelling agents. Further nanoemulgels are evaluated for appearance, pH, spreadability, viscosity, in-vitro drug diffusion study, stability study, and antifungal study. Results: FTIR study concluded that drug is compatible with all the excipients. Among all nanoemulsion NF2 exhibited; better drug content 81.12% and in-vitro release of 82.62% at 12 hr and was optimized. The prepared nanoemulgel was homogenous, transparent yellow with high % drug content 88.23, spreadability 65.50, viscosity 18829, pH 6.5. The drug release at 8 hr was 74.61%. Conclusion: Research can conclude that luliconazole loaded nanoemulgel can be best alternative to conventional dosage system as it provides better antifungal activity and improved patient compliance.