Simple, accurate and stability-indicating colorimetric method was developed for the determination of niclosamide in bulk and dosage forms. The method was based on the alkaline hydrolysis of niclosamide with 0.1M sodium hydroxide under the specified reaction conditions. The zero-order and first derivative spectra of the degradation product (yellow colored) were recorded at 380nm and 409nm respectively. Linearity was exhibited in the concentration range 4-20µg/ml with good correlation coefficient (not less than 0.999). The recovery percentage results (99.47 ± 1.30%, n=3) indicated the absence of interference by the tablets recipients. The results obtained by the developed method were statistically compared by the results of a reported method for determination of niclosamide, and evaluated at 95% confidence limits.