AIM To design controlled release topical delivery of mupirocin for treatment of skin infection. BACKGROUND Mupirocin is an antibacterial drug. Mupirocin works to kill the bacteria which include strains of Staphylococcus aureus and Streptococcus pyogenes. It is also used for treatment of inflammation of a hair follicle. Halflife of mupirocin is only 20-40 min. It has very slight solubility in water. Patent literature had shown work on ointment, antibiotic composition, nasal and topical composition. Emulgel is a duel control release system for topical delivery of hydrophobic drugs. OBJECTIVE was to formulate emulgel with controlled delivery of mupirocin using Sepineo P 600. METHODS Soya oil, tween 80 and polyethylene glycol 400 (Oil: Surfactant: Cosurfactant) was used for emulsion formulation. Emulgel was optimized by 32 factorial design. Sepineo P 600 and hydroxy propyl methyl cellulose K4M was used as independent variable. Drug excipient compatibility analysis was carried out by FTIR, UV and DSC spectra. Emulgel was evaluated for its physical characterization, in-vitro release, ex-vivo release, antimicrobial and antiinflammatory study. RESULTS DSC, UV and FTIR analysis confirmed drug excipient compatibility. FE SEM showed size range in between 228-255 nm. Zeta potential was found to be -25.1mV, which showed good stability of the emulsion. Design expert software showed F2 as optimized batch. Release studies indicated controlled release of drug form Sepineo P600 gel due to its higher gelling capacity. Batch F2 showed comparable results with marketed formulation against Staphylococcus aureus. For batch F2, 40 $\mu$g/ml was the minimal inhibitory concentration. CONCLUSION Antimicrobial and anti-inflammatory study proved successful development of stable controlled release mupirocin emulgel.