The present invention is related to an ethanol-free microemulsion composition for cosmetic and dermatological applications and a method of preparation thereof. The said microemulsion comprises of natural oil, fragrance oil, and other hydrophobic materials insoluble in water, non-ionic surfactants, alkyl/fatty alcohols, specifically branched saturated fatty alcohols and water. The microemulsion composition of the invention is transparent, stable and with reduced stickiness.