Azithromycin, an important member of the azalides subclass is found effective in the treatment of both Gram-positive and Gram-negative organisms. But it has relatively low bioavailability of 37% due to its water insoluble property. We aimed at designing a thermodynamically stable microemulsion formulation of azithromycin to improve the solubility of azithromycin to a greater extent and therefore, the efficacy of the drug could be greatly enhanced. A typical wt/wt% composition of clove oil (5%), tween 20 (30%) and water (65%) when incorporated with drug in the oil core produced droplets in the diameter size range of 8-20 nm as confirmed through dynamic light scattering method. The small size would aid in easy permeation through capillaries and thereby, the efficacy could be greatly attained. The system was further characterized using conductivity, pH, and viscosity measurements to understand the physico-chemical nature. Thus, the system stands out to be the best system for the oral drug delivery of azithromycin.