ointment

n. soft spreadable mixture that is often medicated and is used to sooth the skin, balmy medicated cream

An ointment is a viscous semisolid preparation used topically on a variety of body surfaces. These include the skin and the mucus membranes of the eye (an eye ointment), vagina, anus, glans and nose. An ointment may or may not be medicated.Related topical preparations include creams, lotions, liniments and gels.
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Noun
1. semisolid preparation (usually containing a medicine) applied externally as a remedy or for soothing an irritation
(synonym) unction, unguent, balm, salve
(hypernym) remedy, curative, cure
(hyponym) arnica
(substance-meronym) lanolin, wool fat, wool grease
(classification) medicine, medical specialty
2. toiletry consisting of any of various substances resembling cream that have a soothing and moisturizing effect when applied to the skin
(synonym) cream, emollient
(hypernym) toiletry, toilet article, toiletries
(hyponym) cold cream, coldcream, face cream, vanishing cream

(n.)
That which serves to anoint; any soft unctuous substance used for smearing or anointing; an unguent.
  

An ointment has an oil base whereas a cream is water-soluble. (The word ointment comes from the Latin ungere meaning anoint with oil).