Purpose: The present study was intended to develop lurasidone micro emulsion for intranasal delivery in the treatment of psychosis. Methods: Sesame oil, tween-20(surfactant) and plurol oleique(co-surfactant) were selected based on the solubility of lurasidone. Pseudo ternary phase diagram was constructed to know the surfactant: co surfactant ratio which can form microemulsion. The prepared micro emulsion was characterized for FTIR, thermodynamic stability, droplet size and zeta potential, drug content, in-vitro diffusion study, stability study and release kinetics. Results & Conclusion: The ratio of surfactant to co surfactant 1:2 and 1:3 were selected from the pseudo ternary phase diagrams. Among all the formulations LA1 showed higher diffusion rate (99.11%) with a particle size of 3.957µm and zeta potential above 50mv. The optimised formulation was stable for a period of 3 months. Thus Lurasidone intranasal micro emulsion was developed which improved solubility and hence in-vitro diffusion of the drug. KEY WORDS: Micro emulsion, intranasal drug delivery, pseudo ternary phase diagram, zeta potential.