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Terbinafine hydrochloride (TH) is first line drug against treatment of onychomycosis; which is the commonest fungal infection of nail plate. However, strong barrier property of nail plate restricts the effective topical treatment of onychomycosis. In this study, TH loaded solid lipid nanoparticles (SLNs) were prepared and subsequently incorporated into a gel system. SLNs were prepared by high pressure homogenization (HPH) technique using glyceryl monosterate (GMS), compritol 888ATO and a co-processed lipid. They were evaluated for particle size, polydispersity index, zeta potential, % entrapment efficiency (%EE), % drug loading (%DL), drug content and in-vitro drug release. Optimized SLNs were incorporated into chitosan gel and further evaluated for in-vitro drug release and ex-vivo antifungal study.