The aim of the present research work was to investigate the potential of emulgel in enhancing the topical delivery of ketoconazole. Emulsion in gel have emerged as one of the most interesting topical drug delivery system as it has dual release control system i.e. emulsion and gel. Also the stability of emulsion is increased when it is incorporated in gel. Emulgel formulations of Ketoconazole were prepared using 2 types of gelling agents: Carbopol 934 and Carbopol 940. The influence of the type of the gelling agent and the concentration of both the oil phase and emulsifying agent on the drug release from the prepared emulgel was investigated using a 23 factorial design. The prepared emulgel were evaluated for their physical appearance, viscosity, drug release, globule size, skin irritation test, antifungal activity, transmission electron microscopy, Ex vivo Syudy, In Vivo Study and stability. Commercially available ketoconazole cream was used for comparison. All the prepared emulgel showed acceptable physical properties concerning color, homogeneity, consistency, spreadability, and pH value. The antifungal activity and drug release were found to be higher for optimized formulation .