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Transdermal Drug Delivery System (TDDS) has been a major area of research these days offering many advantages as compared to traditional drug delivery systems. However, TDDS has limited market success due to its barrier properties lowering success of systemic drug delivery from liposomal formulation after topical application owing to the inability of such vesicles to pass through the narrow (< 30 nm) intercellular passage in the outer skin layers. The Introduction of Ethosomal technology has initiated a potentially promising area on vesicular research for effective transdermal drug delivery as preparation of ethosomes is easy with no complicated equipment involved and therefore can be scaled up to the commercial level. Ethosomes are modified lipid carriers that enable drugs to reach into deeper skin layers. They are non-invasive soft, malleable vesicles representing a lipid vesicular carrier system embodying ethanol in relatively high concentration. Compared to classic liposomes, known to mainly deliver drugs to outer layers of skin, ethosomes sufficiently penetrate through the stratum corneum delivering drugs to and across the deeper layers of skin. Many reports show a promising future of ethosomes in making transdermal delivery of various highly lipophilic molecules such as cannabinoids, testosterone, and minoxidil, as well as cationic drugs such as propranolol, trihexyphenidyl, Cyclosporine A, insulin, salbutamol etc. Improving drug‘sefficacy, patient compliance, and reduction in total cost of treatment. This review of article includes the Introduction of Ethosomes, scope, History of Ethosomes, composition, physicochemical properties, Mechanism of action, preparation of Ethosomes, factors affecting properties of Ethosomes, future perspectives, characterization of Ethosomes, Reasons, Benifits, Advantages, Disadvantages, limitations and challenges, Application of Ethosomes.