594021 Disclosed herein is a dermaceutical cream comprising fusidic acid and cream base containing at least one of each of a primary and secondary emulsifier such as cetostearyl alcohol, a waxy material such as paraffin, a cosolvent such as a glycol, an acid such as hydrochloric acid, and water wherein said fusidic acid is formed in situ from sodium fusidate as the starting raw material, wherein sodium fusidate is converted into fusidic acid under oxygen-free environment. The cream of the present invention has greater shelf-life stability and the finer particle size of the sodium fusidate than the conventional creams containing fusidic acid. The dermaceutical cream may further comprise a preservative such as methylparaben, a buffering agent such as sodium hydrogen ortho phosphate, an anti-oxidant such as butylated hydroxy anisole, and a humectant such as glycerin.