A unique feature of topical drug delivery is the direct accessibility of the skin as a target organ for diagnosis and treatment. Among the various groups of semisolid preparations, the use of gels has expanded both in cosmetics and in pharmaceutical preparations. Despite of several advantages of gels there is a limitation in delivery of hydrophobic drug moiety. This limitation can be overcome by the use of novel topical drug delivery i.e, emulgel. When gel and emulsion are used in combined form the dosage form are referred as emulgel. The presence of a gelling agent in the water phase converts a classical emulsion into an emulgel. The major objective behind this formulation is delivery of hydrophobic drugs to systemic circulation via skin. Emulgels show dual release control system i.e. gel and emulsion. These emulgel are having major advantages on novel vesicular systems as well as on conventional systems in various aspects. Emulgels for dermatological use have several favourable properties such as being thixotropic, greaseless, easily spreadable, easily removable, emollient, non-staining, water-soluble, longer shelf life, bio-friendly, transparent & pleasing appearance. Various permeation enhancers can potentiate the effect, So emulgels can be used as better topical drug delivery systems over present systems. The use of emulgels can be extended in analgesics, antifungal drugs and various cosmetic formulations.