The present invention relates to a composition for treating diaper rash along with skin rejuvenation. More particularly, the present invention relates to a pharmaceutical cream comprising a biopolymer, and an anti diaper rash active ingredient. It discloses a composition for treating diaper rash along with skin rejuvenation containing a) a biopolymer in the form of chitosan, b) a combination of active ingredients used in treating diaper rash, c) a cream base containing primary and secondary emulsifiers, waxy materials, co-solvents, acids, preservatives, buffering agents, anti oxidants, chelating agents, and humectants, and d) water. The active ingredients, namely chitosan, and diaper rash agents, are incorporated in cream base for use in treating diaper rash.