The present application provides nanoemulsion for topical administration containing Lornoxicam and method of preparing the same. (1) in the form of an oil-in-water nanoemulsion, (2) stable under appropriate storage conditions, (3) containing therapeutically effective amount of Lornoxicam or its pharmaceutically acceptable salt, (4) containing Clove oil as a oil component with antiinflammatory activity (5) containing components acceptable by regulatory agencies (6) improved patient compliance The present invention relates to pharmaceutical compositions of Lornoxicam for treatment of inflammatory conditions exhibiting greater permeability, and enhanced therapeutic efficacy. The invention also relates to process of preparing such compositions. Fig. i