In present study, antifungal paper soap strips of fluconazole were prepared & evaluated for dermal infections because the presence of thick foam on the infected part causes hydration of stratum corneum for better penetration of drug. The formulation and evaluation of medicated soap strips were carried out in two phases. Phase-I studies optimization, which was carried out to study water absorption capacity using different types of papers (Whatman filter paper no. 1, 41 and 42, filter paper, bond paper and butter paper) by determining the parameters weight gain, size, shape and foam test. From these parameters best soap, concentration of liquid soap solution and papers were selected. Phase-II studies involve incorporation of drug in best soap solution and papers chosen from phase-I studies. The medicated soap strips were prepared by dipping the selected paper in drug containing soap solution. The prepared medicated paper soap strips were characterized for weight gain, foam test, drug content uniformity, FTIR, in vitro drug release studies using diffusion cell with hydrated cellophane membrane and primary skin irritation test. The microbial studies indicate drug activity by zone of inhibition against microorganisms C.albicans, S.typhi, S.aureus, E.coli, klibsiella, B.subtilis, P.aeroginosa, A.niger and A.fumigatus species. The obtained results for prepared medicated soap strip of fluconazole indicate that these strips are economic, convenient, gives good foam on application, uniform in drug content and not showing any skin irritation.