Herbal therapy and herbal drug predominates in traditional medicine practiced in developed world plant derived substances and herbal medicines have recently attracted the great interest towards their versatile application. The main objective the present study is to formulate and evaluate herbal ointment with antimicrobial activity by using Azadirachta Indica and Bombax Ceiba polymer. The ointment base was prepared and formulation of ointment was done by incorporation of the polymer in the base by levigation method. Ointments were prepared by using different concentration of the polymer such as using 1% Azadirachta Indica, 1% Bombax Ceiba and their combination (0.5% Azadiracta indica and 0.5% Bombax ceiba) w/w. After completion of formulation it was evaluated for its Physicochemical parameter like colour, odour ,pH, Homogenity, solubility, Consistancy, washability, Spreadability, viscosity, extrudability, skin irritation test, diffusion study. The herbal formulations were evaluated for its Antimicrobial activity against Staphylococcus aureus and prepared formulations were also stable at 5ËšC and Room temperature. Overall result of this study reveals that this is an effective herbal ointment.