The present invention relates to sustained release and long residing opthalmic formulation having thermosensitivity, mucoadhesiveness, hydro gel properties and small particle size. The said formulation comprises micelle solution of random block co-polymer having a hydrophobic component and a hydrophillic component of general formula —(X+Y+Z-)m, and at least one hydrophobic drug with the block co-polymer solution. The invention also provides a process of preparing said formulation.