Background: This research aims to prepare a hydrogel of psoralen and capsaicin extract for topical application using various gelling agents like Carbopol 940, HPMC, Pluronic 127, and Pectin to minimize the side effect of synthetic drugs in treating psoriasis. Natural, synthetic, and semi-synthetic polymers were utilized for the treatment of psoriasis, and provide a number of benefits, including improved skin permeability, particularly for psoralen, and improved drug stability with improved therapeutic concentration gradients across the skin. Psoriasis is a T cell-mediated autoimmune disease affecting 2-3 % worldwide. Methods: FTIR and HPLC confirm the extract identification. pH, spreadability, homogeneity, extrudability, phase separation, viscosity, drug content, and stability analysis are all tested on all prepared hydrogels. The releases of psoralen from all prepared formulations are studied in phosphate buffer pH 6.8 using dialysis membranes at 37oC. Results: The net results conclude that hydrogels made using Carbopol-940 and HPMC (A1, A3, B2, B3) are the most superior and reliable formulations in terms of physicochemical parameters and in vitro permeation studies, out of which 1% carbopol 940 formulations (A3) showed maximum %CDR of 87.96 % much higher compared to other concentration used. Fitting data of the best formulations (A1, A3, B2, B3) obtained from in vitro drug permeation studies showed the release best fitted to the Korsmeyer-Peppas model as indicated by higher R2 value. The optimum formulation (A3) has a higher R2 value, which is then compared with the marketed formulation for the release of psoralen (in vitro), showing that %CDR of the A3 formulation (87.96%) is much higher than the %CDR of the marketed formulation (79.58%), due to the impact of capsaicin which acts as a penetration enhancer and therefore increases psoralen release from the hydrogel. Conclusion: As a result, the permeability issue with Psoralen for dermal drug administration has been overcome by using capsaicin as a permeability enhancer.