An aqueous terconazole composition comprises at least about 0.4 percent by weight of terconazole dissolved in water, and a terconazole crystallization-inhibiting amount of an organic acid. Preferably the organic acid is a water soluble alkyl carboxylic acid, a polybasic organic acid, or a combination thereof. The composition is free from terconazole crystals at an ambient temperature of about 20° C. Methods of preparing the composition are also described. The compositions provide for improved therapeutic release of terconazole.