Transdermal drug delivery appears to be most vital drug delivery system because of its merit over conventional systems. Transferosomes & the fundamental concept of transfersomes were launched by Gregor Cevc in the year 1991. The name means carrying body and is derived from the Latin word transferre, meaning to carry across and the Greek word soma, meaning a body. Novel drug delivery system aims to deliver the drug at a rate directed by need of body during the period of treatment and channel the active entity to the site of action. Transferosome is one of the novel vesicular drug delivery system which consists of phospholipids, surfactant and water for enhanced transdermal delivery. Transferosomes are able to reach intact deeper regions of the skin after topical drug administration while delivering higher concentrations of active substances making them a successful carrier for transdermal applications. These vesicular systems can deliver low as well as high molecular weight compounds. Targeted and controlled release formulations can also be prepared by transferosomes as it can accommodate drug molecules with wide range of solubility. Various strategies can be used to augment the transdermal delivery which includes iontophoresis, electrophoresis, sonophoresis, chemical permeation enhancers, microneedles, & vesicular system (liposomes, niosomes, elastic liposomes such as ethosomes & transfersomes). It exists as an ultra-deformable complex having a hydrated core surrounded by a complex layer of lipid. It penetrates the stratum corneum by either intracellular route or the transcellular route by the generation of osmotic gradient. Advantages of Transferosomes are wide range of solubilities, better penetration, biocompatible and biodegradable etc. Disadvantages of Transferosomes are oxidative degradation, expensive, etc. The transfersomes were formulated by the conventional rotary evaporation sonication method. Transferosomes can be applied in controlled release, transportation of large molecular weight compounds, target delivery to peripheral subcutaneous tissues, transdermal immunization etc.