Diabetes mellitus represents a chronic metabolic disorder affecting over 415 million people globally, necessitating innovative therapeutic approaches to improve patient compliance and glycemic control. Transdermal drug delivery systems (TDDS) have emerged as a promising alternative to conventional oral and parenteral routes, offering several advantages including avoidance of first-pass hepatic metabolism, sustained and controlled drug release, and improved bioavailability. Liposomal formulations, composed of phospholipids structurally similar to biological membranes, have demonstrated exceptional potential as carriers for antidiabetic drugs across the skin barrier. This comprehensive review examines the formulation strategies, characterization techniques, penetration mechanisms, and clinical applications of liposomal transdermal delivery systems for antidiabetic medications. The paper synthesizes recent advances in nanotechnology-driven formulations including conventional liposomes, transfersomes, ethosomes, and novel ultraflexible vesicular systems, while addressing critical challenges in regulatory compliance, stability, and clinical translation