Nanoemulsions are less commercialized in wood treatment industry because nanoemulsion can be less stable and ineffective if they were not formulate properly. The focus of this study is to formulate a stable and effective nanoemulsion using a pseudo-ternary phase diagram. This research are focusing on establishing lemongrass essential oil loaded nanoemulsions for antifungal activity of lemongrass essential oils toward fungi related diseases in wood. The lemongrass essential oil were extrated using steam distillation. The essential oil extracted then will be used in producing nanoemulsion by mixing surfactant, co-surfactant, oil and water which are Tween 80, glycerol, soybean oil, lemongrass essential oil and distilled water respectively. This elements are mixed together using low energy emulsification process. The nanoemulsion produced then will be used for fungal resistance treatment on wood, to ensure the fungal growth retardation using the essential oil loaded nanoemulsion. From the research it can be seen that the nanoemulsion produced gives out a significant effect toward antifungal activity of the nanoemulsion. As the nanoemulsion inhibits the growth of fungi on the wood chips. This technology helps in making the commercialized wood treatment be more effective and affordable because this technology only used small amount of preservatives yet the treatment is more effective.