Abstract: A novel topical formulation for delivery of nonsteroidal anti-inflammatory drugs (NSAIDs) is characterized by enhanced transdermal absorption and efficacy. A two phase liquid composition has aqueous and oil phases, the oil phase having a relatively high concentration of the NSAID to enhance transdermal absorption and efficacy when incorporated into the topical anti-inflammatory formulation. The two phase liquid composition preferably contains, in addition to an NSAID, at least one melting point depressing agent. A preferred topical anti-inflammatory composition includes S(+)-ibuprofen, thymol, and ethyl alcohol or isopropyl alcohol.