The ancient knowledge of Ayurveda and drugs of herbal origin can be replicated in to a modern science. The present work elaborates the use of microemulsion drug delivery system of extract of Tephrosia purpurea to treat different skin ailments in better manner. In the present work whole plant of Tephrosia purpurea family; Fabaceae which is also traditionally known as Sharpunkha selected on the basis of traditional claim. The reported constituents of plant are alkaloids, tannins and carbohydrates. These constituents are considered to be having antiinflammatory, and blood purifying activity. The proximate analysis, Preliminary Phytochemical Screening and HPTLC fingerprinting analysis of hydroalcoholic extract of plant was done to confirm the presence of alkaloids and tannins. The extract was formulated in Microemulsion gel with different oil samples and optimized formulation was evaluated for various parameters like appearance, spreadability, pH, viscosity, in-vitro diffusion and antimicrobial study. The optimized formulation exhibited significant results for in vitro drug diffusion, viscosity and antimicrobial activity with acceptable spreadability and elegant appearance. Further study of formulation on specific skin disease using some animal models will explore the use of Tephrosia purpurea in cosmeceuticals.