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Abstract : pThe need of securing all types of communication in the present world has led to an increased dependance on cryptographic primitives such as block ciphers, stream ciphers, pseudorandom number generators, hash functions etc. All conventional cryptographic schemes make use of the algebraic structures for their construction. But systems based on non algebraic structures can also provide a considerable amount of security. Quasigroups are one such non algebraic structures. The main focus of this paper is to design a stream cipher based on quasigroup, which can be used in memory constrained devices. Further the work also focuses on the security analysis of the proposed scheme based on various statistical and structural tests. © 2017, Springer Nature Singapore Pte Ltd./p