Novel drug delivery system aims to provide some control in temporal or spatial nature of the drug release in the body. In recent years, vesicle have been the vehicle of choice in drug delivery for targeting and controlled release and it can solve the problems of drug solubility, instability and rapid degradation. Vesicular drug delivery reduces cost of the therapy and can incorporate both the hydrophilic and lipophilic drugs. Nowadays, a number of vesicular drug delivery system such as liposome, pharmacosomes, ethosomes, transferosomes etc. was developed. This article reviews different aspects of this vesicular drug delivery system including their preparation, characterization, advantages and their applications in the drug delivery.