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A antimycotic composition and a process of preparation thereof, comprises of terbinafine compound (I), as the active agent in the form of an acidic salt. Viscosity imparting agent, emollients and additives in the composition comprises water, lower glycol, non-ionic surfactant, and representing an emulsion of "oil-in-water" type and in the composition the mass ratio of the compound (I): Non-ionic surfactants being 1: (5-20) and the constituents by mass % being as follows: Compound (I) … 0.5-5% Water … 30-70% Lower glycol … 10-20% Non-ionic surfactant … 05-20% Viscosity imparting agent (thickeners) … q.s. Emollients … q.s. Drawing: Nil Total Pages: 20.