In order to increase the number of drugs administered via transdermal route, novel drug delivery systems have to be designed. These systems include use of physical means, such as iontophoresis, sonophoresis, microneedles, etc. and chemical means like penetration enhancers and biochemical means using liposomes, niosomes, transferosomes and ethosomes also have been reported to enhance permeability of drug through the stratum corneum55. The vesicles have been well known for their importance in cellular communication and particle transportation for many years. Researchers have understood the properties of vesicles structure for use in better drug delivery within their cavities, which would to tag the vesicle for cell specificity. One of the major advances in vesicle research was the finding a vesicle derivatives, known as an ethosomes. In this review the importance of ethosomes in the design of transdermal drug delivery system was discussed in detail with respect to the preparation methods, characterization parameters and their applications.