Fungal keratitis is a sight threating ocular infection that most frequently occur as a infection of candida species. The present work describes the formulation and evaluation of an ophthalmic delivery system of an antifungal agent, fluconazole, based on the concept of ion-activated in situ gelation. ocular in situ gels can increase the drug residence time thus increasing the bioavailability. Gelrite was used as the gelling agent in combination with HPMC E-50(Hydroxy Propyl methyl Cellulose) that acted as a viscosity-enhancing agent. Formulations were evaluated for physical parameter like clarity, pH, drug content, rheological studies, sterility test, in vitro drug release studies. the formulations were therapeutically efficacious, stable and provide sustained release of drug over a period of 8 Hrs. These results demonstrate that developed system is a best alternative to conventional ophthalmic drops