Fluconazole is a synthetic triazole antifungal drug. It is available as tablets, capsules, oral suspension and injection for treatment of oral, esophageal and vaginal candidiasis. The present work was envisaged to develop a novel and aesthetic bioadhesive vaginal delivery system with improved efficacy. The compatibility between the drug, mucoadhesive polymers and tablet excipients (carbopol, HPMC, Xanthan gum and EC) was studied using Fourier transform infrared (FTIR) spectroscopy and differential scanning calorimeter (DSC). Fluconazole bioadhesive vaginal tablets (FBVTs) were prepared using mixtures of polymers that gave the optimal physico-mechanical properties and also showed the most delayed in-vitro release results. The in-vitro susceptibility profile of Candida albicans to Fluconazole was evaluated using agar cup method. The inhibition zones were calculated and these values were taken as the antifungal effect of the drug. The bioadhesive tablets were clinically evaluated in volunteers suffering from vaginal candidiasis and compared with commercial Fluconazole vaginal tablets (Diflucan ® 150 mg).