The core objective of the present study was to formulate and characterize Ocimum Basilicum topical phytosomal gel. Ocimum basilicum is an important traditional medicinal plant. Some investigations reported that it showed the antimicrobial and wound healing activity. Phytosomes are vesicular drug delivery system which has proved to be beneficial in providing good absorption and better bioavailability over the herbal conventional extracts. The phytosomes were formulated using Ocimum basilicum extract. The formulated phytosomes were characterized using various methods like entrapment efficiency, percentage yield, stability studies, drug content, in-vitro drug diffusion studies, anti-microbial activity and SEM. The topical phytosomal gel of ocimum basilicum was prepared. The formulated gel was evaluated pH, Spreadability, Extrudability, Drug content, in-vitro drug diffusion study and drug release kinetics. The stability studies were carried out as per ICH guidelines. The prepared phytosomal gel was safe, convenient, efficient and also showed better penetration into the skin. Thus, it can be concluded that the topical phytosomal gel may serve as promising dosage form in the treatment of microbial effect.