Objective: This study is aimed to encapsulation of permethrin in proniosomes and formulation and evaluation of dispersed permethrin in powder and micro emulsion-based hydrogel bases.Methods: Permethrin proniosomes were prepared by modified slurry method using Brij 97, cholesterol, aerosil 200 and drug in different weight ratios, and using two different solvents. The prepared proniosomes were characterized for particle size, shape, flow characteristics, entrapment efficiency.Results: The studies demonstrated successful preparation of permethrin proniosomes. The effect of using different weight ratios of Drug: Brij 97: Cholesterol and different solvents on entrapment efficiency were studied. The best proniosomes showed entrapment efficiency percent of 55.58%±1.451 for permethrin and zero residual solvents. Such formula was incorporated in a topical powder and micro emulsion-based hydrogel basis and evaluated through particle size, drug content, stability, and clinical trials for efficacy on sarcoptic mite infestation in sheep and rabbits.Conclusion: Permethrin 5 % micro emulsion-based hydrogel proved to be homogenous, stable, and clinically effective, compared with the topical powder that was unstable under accelerated stability conditions