Objective: In order to investigate the possible therapeutic benefits of chamomile and cedarwood oil, this study formulates and assesses a microemulsion from these two active ingredients. Owing to their increased bioavailability and solubilization capability, microemulsions hold great promise as delivery systems for bioactive substances. Many medicinal qualities, such as antiinflammatory, antibacterial, and antioxidant effects, are well-known for chamomile and cedarwood oil. Methods: By building a pseudoternary phase diagram, the existence zone of the microemulsion was found. Ether as a co-surfactant and Tween 80 as a surfactant were used to create the microemulsion. The microemulsion formulation's test results for dye solubility, viscosity, conductivity, pH, and thermodynamic stability are all characterised. Results: Since most formulations were clear, phase diagram building and the phase titration approach proved to be an effective way for creating microemulsions. According to the outcomes of stress testing, the optimised formulation exhibited both chemical and physical stability. It was discovered that the prepared microemulsions have little viscosity. The optimised formulations that were developed were determined to be w/o type microemulsions based on electrical conductivity and staining tests. In the stability trial, even after being kept for 30 days and centrifuged for 30 minutes at 3000 RPM, no phase separations happened. Conclusion: The current study's attempt to create a unique water-in-oil microemulsion was successful. utilising this cutting-edge method to administer naturally occurring oils with pharmacological activity and investigating possible synergistic effects of combination with improved therapeutic outcomes.