Ketoconazole shampoo is a medicated shampoo that is primarily used to treat dandruff. It contains an antifungal medication called ketoconazole, which works by preventing the growth of fungus. The use of this medication may help to relieve the flaking, scaling, and itching associated with dandruff. In addition to dandruff, ketoconazole 2% shampoo is also used to treat a skin condition known as pityriasis (tinea versicolor), a fungal infection that causes a lightening or darkening of the skin of the neck, chest, arms, or legs. Shampoos containing ketoconazole are available both over the counter (OTC) and by prescription from a doctor. If you experience any symptoms such as hair discoloration, abnormal hair texture, removal of the curl from permanently waved hair, hair loss, itching, burning sensation of the skin, or blistering, peeling, or redness of the skin while using the ketoconazole 2% shampoo, you should stop using it and check with your doctor right away.