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Topical fungal infections are one of the often faced diseases worldwide. The first choice for the treatment of fungal infection is topical therapy due to its advantages such as decreasing the risk of systemic side effects and targeting the drug at the site of fungal infection. The treatment of the fungal infection depends on the penetration of the drug molecules through the outermost layer of the skin (stratum corneum) at an effective concentration. The disadvantages of topical treatment are its lack of drug adherence at the site of application and bigger particle size of drug molecules. Nanostructured lipid carriers are the advanced form of lipid nanoparticles and carry the nano range of the drug molecules, which helps to achieve localized and slow release. The topical route is generally preferred due to the possible side effects of oral medication. Advances in the field of formulation may soon render outdated conventional products such as creams, ointments, and gels. Several carrier systems loaded with antifungal drugs have shown promising results in the treatment of skin fungal infections.