The evolution of nanotechnology has revolutionized the field of transdermal and dermal drug delivery. Among various vesicular carriers, ethosomes have emerged as highly efficient, soft, and deformable lipid-based systems designed to enhance the delivery of bioactive compounds through the skin barrier. Ethosomes are composed of phospholipids, ethanol, and water, which synergistically improve drug solubility, permeability, and bioavailability compared to traditional liposomes(1,2). Due to their unique structure, ethosomes can encapsulate both hydrophilic and lipophilic molecules and penetrate deeply into skin layers. Recent research highlights their application in dermatology, cosmetology, oncology, and photodynamic therapy, making ethosomes one of the most promising nanocarriers for topical and transdermal delivery(3,4). This review provides a comprehensive overview of ethosomal structure, mechanism of skin penetration, preparation methods, applications, advantages, limitations, and future prospects, supported by extensive literature from 2010–2024