Self-emulsifying system-based lipstick may prove to have potential of enhancing the moisturizing characteristics and deliver the hydrophobic drug antifungal drugs for the treatment of lip fungal infections. In this study, the self-emulsifying (SEDDs) mixture of Ketoconazole was obtained using Isopropyl myristate (Oil), Tween 80 (surfactant), and combination of Transcutol P and PEG 400 as co-surfactant. The medicinal lipstick was developed from the SEDDs by using waxes such as bees wax, carnauba wax, and lanolin along with cow ghee and castor oil. The lipstick formulations were assessed on the basis of physicochemical features, such as pH, spreadability, softening point, breaking point, content uniformity, and in vitro drug release. Furthermore, several discriminating tests were performed to evaluate the medicinal potential by performing tests such as skin irritation, ageing stability, and antifungal study. The optimized formulation showed exceptional results in physicochemical analysis and ~88% release of drug in 12 hours. The formulations displayed adequate stability for the period of 2 weeks at various conditions such as room temperature and refrigeration (2°C to 8°C) with no signs of irritation in the skin irritation study. The zone of inhibition produced by lipstick formulation was significantly higher as compared to reference standard (Ketoconazole in ethanol) which shows high antifungal activity. It was concluded form the outcomes that SEDDs based lipstick formulation showed a lot of promise as topical antifungal treatment option for lip fungal infections.