It relates to topical liquid compositions comprising at least one penetration enhancer that promotes permeation of pharmaceutically active agent through nail or skin. In particular, it relates to pharmaceutical formulations of, but not limited to, terbinafine for treating onychomycosis. The liquid topical compositions further comprise a secondary absorption enhancer selected from glycerol or terpenes. In addition, the liquid topical compositions further comprise a surfactant, a humectant, an emulsifier, a solubilizing agent, a solvent, a base polymer, a diluent, an antioxidant, a preservative and optionally a film forming agent. It also provides a method of drug delivery applying the topical composition on the skin of a subject in need thereof, wherein at least a fraction of 1% to 80% or greater of the drug is delivered to and absorbed by the skin or nail and absorbed systemically.
