Aim: Aim of the present research study is to formulate herbal anti-fungal cream with p-chloro-m-xylenol. Herbal extracts are becoming popular alternatives to synthetic treatments because they offer multi-target effects with fewer toxic side effects. formulation F1, F2, F3 were subjected for characterization and evaluation of physiochemical parameters like FTIR studies, color and odor, type of smear, irritancy test, spreadability test, washability test, antifungal test of formulation Conclusion: ointment showed white color with smooth texture and free of gritty particles. FTIR studies confirmed that PCMX, basil oil, terpineol oil, aloe vera gel with excipients does not show any significant change in peak hence, it is found to be compatible. All the test parameters evaluated were in acceptable range with no skin irritation. Anti-fungal studies were performed with standard control samples as Fluconazole against the fungal strain candida albicans by well diffusion method. All the formulation possesses effective anti-fungal properties. F1 showed 1.6 cm zone of inhibition, formulation F2 showed 2 cm and formulation F3 showed 2.1 cm zone of inhibition compared to standard sample fluconazole that is 1 cm. comparative study showed that there was minimum difference between F2 and F3 as anti-fungal action. By considering the entire test and result formulation F2 was found to be optimized formulation with effective anti-fungal activity.