Miconazole kills fungi and yeasts by interfering with their cell membranes. It works by stopping the fungi from producing a substance called ergosterol, which is an essential component of fungal cell membranes. The disruption in production of ergosterol disrupts the fungal cell membrane, causing holes to appear in it.

The cell membranes of fungi are vital for their survival. They keep unwanted substances from entering the cells and stop the contents of the cells from leaking out. As miconazole causes holes to appear in the cell membranes, essential constituents of the fungal cells can leak out. This kills the fungi and treats the infection.

Miconazole also has some antibacterial action and kills certain bacteria that may also be present in the infection.

Daktarin oral gel is used to treat fungal infections of the mouth and throat, such as oral thrush. The gel should be held in the mouth for as long as possible before swallowing. For treating localised areas of infection in the mouth, a small amount of gel may be applied directly to the affected area with a clean finger. Daktarin oral gel can also be taken to treat fungal infections of the intestines.