Poor response of fungal nail infection to topical treatment with antimycosis is probably related to poor drug permeation into the infected nail. Niosomes are the nano carriers which play an increasingly important role in drug delivery as they can reduce toxicity and modify pharmacokinetics and bio availability. Oxiconazole nitrate is a potent antifungal drug used in the treatment of fungal infections. The aim was to develop Oxiconazole nitrate Noisome using thin film hydration method and optimized for molar quantities of span 60 and cholesterol to impart desirable characteristics. And the formulation was evaluated for entrapment efficiency and invitro drug release. The entrapment efficiency was found in the range of 76.05-94.64%and invitro drug release in the range of 49.03-67.26%. Oxiconazole Nitrate Noisome formulated with span 60 and cholesterol in the ratio of 1.5:0.2 were found to be promising and were incoparated into 1% carbapol gel. The formulated gel was evaluated for various physicochemical parameters and antifungal activity. The invitro drug release study was carried out using phosphate buffer saline pH 7.4 and was found to be 67.95% in 6 hours. Gel formulation containing Noisome loaded with oxiconazole showed prolonged action than the non niosomal form and it can be developed successfully to improve antifungal activity.