The rationale of the present work is to design a vaginal gel formulation with mucoadhesive properties to ensure longer residence at the infection site, providing a favourable release profile for the antifungal drug clotrimazole with the help of β-cyclodextrin nanosponges. Hence efforts were made to prepare clotrimazole loaded nanosponges containing vaginal gels using polymers like hydroxy propyl methyl cellulose (HPMC), sodium carboxy methyl cellulose (NaCMC), methyl cellulose (MC) and carbopol. The gel formulations were prepared with a view to improve permeability of drug. The prepared gel were evaluated for pH, Viscosity, Spreadability, Extrudability, Mucoadhesive time and In vitro diffusion study. The gel formulations can be graded in the following order with respect to the rates of diffusion of drug from them: (HPMC) < (MC) 0.5), which indicates non fickian diffusion. It was found that the clotrimazole loaded nano sponges containing gels prepared with HPMC showed good extrudability, homogeneity, spreadability and required diffusion rate in comparison with other formulations and was selected as suitable candidate to be delivered through vaginal route at controlled rate.