This research project is aimed to prepare improved topical preparation of Calcipotriol in the treatment of psoriasis by incorporation of an anti-inflammatory agent, keratolytic agent, humectants, surfactant, thickener & to perform its evaluation. In these different preparations of lotions sodium carboxymethylcellulose is used as a viscosity-enhancing agent in varying concentrations. This non-steroidal formulation is prepared by adding tea tree oil to avoid side effects associated with steroidal preparation and to avoid the issue of atrophy with long-term use of steroids. Evaluation of all the formulations such as spreadability, viscosity, drug content determination, pH, in-vitro release study, to choose the optimized formulation was carried out. According to ICH guidelines, stability studies were carried out to check the stability (parameters such as appearance, pH, viscosity, drug content) of prepared formulations for 3 months at room temperature. In-vitro drug release study CT5 formulation was carried by dialysis diffusion method. The cumulative% drug release of CT5 formulation in 210minutes was 85.10%. Based on the evaluation, formulation (CT5) was found to be better among all the formulations. The prepared calcipotriol formulation and a commercial formulation of calcipotriol were evaluated for anti-psoriatic activity. In-vivo anti-psoriatic was performed by using the Imiquimod Induced Psoriasis skin model. The results obtained in this study have been concluded that the prepared formulation (CT5) has great potential for topical delivery in the treatment of psoriasis.