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Topical terbinafine is used to treat certain fungal skin infections, including athlete's foot, jock itch, and ringworm. The most common side effect is skin irritation. Wash the infected area with soap and water and dry it well before using topical terbinafine Learn more about Terbinafine Cream. Lamisil cream is used to treat infections caused by a group of fungi called dermatophytes. These fungal infections include: Tinea (ringworm) infections of the body and groin (jock itch) Tinea infections of the feet, which is more commonly known as athlete's foot.