The effect of α-hydroxy group on the phase behavior in a skin lotion model system was studied by determining the phase diagrams for the two systems acetic acid / Laureth 4 / white oil / water and glycolic acid / Laureth 4 / white oil / water using visual observation by optical microscopy. The two acids when combined with surfactant and water gave an isotropic liquid solution, and a lamellar liquid crystal with different amounts of solubilization showing both acids to act as hydrotropes. The result provided essential information about the differences in the phase behavior which can attribute to the presence of a-hydroxy group in the glycolic acid. Small angle x-ray diffraction was used to determine the boundaries of the lamellar liquid crystal phases in the two systems, both acids were found to be located in the water region in the liquid crystal.