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GIT irritation is prominent limitation with the use of Non-steroidal anti-inflammatory drugs (NSAID’s). There is rising interest in designing formulations which will deliver the drug at the site of action as topical gels, to avoid GIT irritation and other systemic side effects. Liquid Crystal phase has emerged as a novel material for the preparation of topical drug delivery system. In present study the attempt is made to prepare Lornoxicam loaded lyotropic liquid crystalline gel using glycerol monooleate. Glycerol monooleate is biocompatible, bioadhesive, penetration enhancer and sustain release agent. It also promotes ceramide extraction and enhancement of lipid fluidity in the stratum corneum region of the skin. Five formulation of lornoxicam were prepared and evaluated for parameters like drug content, viscosity, spreadability, Extrudability In-vitro drug release along with in vivo study.  In-Vitro and Ex-Vivo drug release kinetics showed that there was 72.85% and 77.98% drug release within 48 hrs. Skin irritation test suggested that prepared formulation was safe for human use. In-Vivo evaluation of this formulation was done by carrageenan induced rat paw edema anti-inflammatory model. Keywords: Lornoxicam, GMO, Lyotropic liquid crystal, Anti-Inflammatory, Topical drug delivery