This study focuses on the formulation and evaluation of Aloe vera cold cream with paraben-free preservatives. Aloe vera was incorporated into the formulation for its hydrating and soothing properties, which are effective for dry skin. In response to growing concerns about the potential health risks posed by parabens, alternative preservatives were explored. Different cold cream formulations were prepared by incorporating preservatives, including a synthetic preservative (phenoxyethanol), a natural preservative (grapefruit seed extract), and a control with methylparaben. Several tests, including physical appearance, homogeneity, pH, spreadability, viscosity, acid value, moisturising effectiveness, antimicrobial activity, and stability under different storage conditions, were conducted to evaluate the formulated products. The formulations with phenoxyethanol and grapefruit seed extract exhibited comparable results: pale-yellow colour with a smooth texture, pH 6–7, spreadability below five gcm s−1, viscosities ranging from 104000 to 120000 cps, acid value range from 14 to 17 mg NaOH g−1, and significant moisturising effect (p-value < 0.0001), to the paraben-containing formulation. No antimicrobial activity was observed for any of the preservatives. This study met consumer demand by offering a safer option for formulating Aloe vera cold cream with paraben-free preservatives.