Tulsi oil, though reported to be affective against broad spectrum bacteria and fungi the simple conventional gel formulations could not enter the clinical trials due to instability of Tulsi oil. Microbial growth in the formulation, phase separation and incompatibility with aqueous components are the major concerns associated with formulation and development involving Tulsi oil as the active component. In last few decades several studies have been carried out by Indian scientists and researchers to suggest the role of essential oils and Eugenol in therapeutic potentials of Ocimum sanctum Linn. Eugenol is a phenolic compound and major constituent of essential oils extracted from different parts of Tulsi plant. Various workers have tried extract of Ocimum sanctum against some well known fungal etiological agents as Candida albicans. Candidiasis is a very common disease not only in human but also in animals and therefore always has been a challenge to scientist. Overgrowth of several species including albicans can cause superficial infections such as oropharyngealcandidiasis (thrush) and vulvo vaginal candidiasis (vaginal candidiasis). Oral candidiasis is common in elderly denture wearers. In otherwise healthy individuals, these infections can be cured with topical or systemic antifungal medications (commonly over-the-counter antifungal treatments like miconazole or clotrimazole). Ointments, creams, liquid preparations, powders, aerosols, gels are various topical drug delivery systems. A ternary plot depicting proportions of water, Tulsi oil and surfactant mixture with gelator, was prepared to predict the gelling compositions. To figure out the area of ternary plot fulfilling MIC, antifungal susceptibility testing of Tulsi oil was carried out. In- vitro diffusion study was done and percent release was quantified in terms of Eugenol. Further Stability studies were performed. HET- CAM test was carried out to assess biocompatibility. The drug release was found to follow Korsmeyer-peppas model with zero order release pattern which was supported by higher release exponent value, indicating super case II transport systems. The optimized organogel showed shelf life of 54, 42, and 22 days at 40C, 250C, 500C respectively and was found to be biocompatible and physically stable for longer period as compared to conventional Tulsi oil gel formulation. The present study highlights the usefulness of approach selected for study to improve the formulation aspects in terms of physical stability of oily active components.