In Ayurveda word, ‘Kushtha’ means a pathological condition which despises the skin. Majority of the dermatological disorders have been described under this umbrella term. ‘Dadru’ is one of the twenty types of Kustha. Its correlation with cutaneous fungus infection by modern Ayurveda scholars. Itching and moist skin is the chief cardinal feature of Dadru. Various Lepa, Churna, Asawa and Vati etc., are mentioned in various Classical Text. Very few medicines are tested for their efficacy and toxicity on animals, and their clinical study is evaluated. While these medicines are very frequently used in day to day clinical practice. To improve the compliance and global acceptance of the Ayurvedic medicine standardization, toxicity study, experimental study and conversion into new dosage forms are required. Conventional Dadrughn Lepa was converted into its cream by adding Polysorbate 80, Cetomacrogol B.P., Carbopol and glycerine. This study aims to investigate the In-vitro antifungal property of the Dadrughn lepa, Dadrughn oil and Dadrughn Cream to evaluate against three common dermatophytic species, viz. Microsporum canis, Trichophyton rubrum and Epidermophyton floccosum adopting Agar cup diffusion technique. The studied drug shows very enthusiastic result to treat the fungal disease of the skin.