This study aimed to fabricate nanogels from nanoemulsion loaded with terbinafine and explored the characteristics and potential applications of FOR2 (Drug-loaded nanoemulsion), and FOR3 (Chitosan-based nanogel prepared from the nanoemulsion). Utilizing scanning electron microscopy (SEM), this study investigated the morphologies of these formulations, revealing that FOR1 displayed a mesh-like structure, while FOR2 and FOR3 exhibited interconnected pores of varying diameters, enhancing their drug loading and release capabilities. The Spreadibility of each formulation was assessed at temperatures of 8°C, 25°C, and 40°C, with FOR1 and FOR2 demonstrating higher Spreadibility, suitable for applications requiring ease of application and rapid absorption. In contrast, FOR3 showed lower, more consistent Spreadibility, indicating its potential for localized or controlled release applications. In vitro drug release studies further differentiated the formulations: FOR2 rapidly released the drug, making it ideal for acute treatment scenarios, whereas FOR3 sustained drug release, a key advantage of nanogels over nanoemulsions, making it suitable for chronic disease management. This sustained release profile of FOR3 could potentially improve therapeutic outcomes and patient compliance by minimizing dosing frequency. Antifungal activity was also evaluated and demonstrated significant and superior antifungal efficacy of the nanogel formulation (FOR3). In conclusions, the findings highlighted the superiority of the nanogels (FOR3) which offered significant advantages for prolonged therapy, accentuating the importance of formulation choice in enhancing treatment efficacy.