Abstract: The present invention relates to a water-borne nail polish formulation which is non-flammable, non-toxic and is practically odorless comprising the use of water-dispersible ingredients. The water-based nail polish formulation comprises from about 10 to about 80%/wt. of a water-dispersible aliphatic urethane, from about 1.0 to about 10.0%/wt. of a hardening agent, from about 3.0 to about 10.0%/wt. of a plasticizer agent, and the balance being a isopropyl alcohol:water solvent mixture. The nail polish formulation of the present invention eliminates the use of any noxious or toxic components, such as nitrocellulose, toluene, styrene, MEK and the like.