Novel approaches in the drug delivery system can be used for drug targeting in which the drug gets distributed in the body in such a manner that drug interacts with the target tissue. Niosomes are a type of novel drug delivery system in which the medication is encapsulated in a vesicle. Niosomes are a non-ionic surfactant based multilamellar or unilamellar vesicles in which a fluid arrangement of solute is completely enclosed by a membrane because of the association of surfactant macromolecules as a bilayer. Niosomes release the drug in a controlled manner through its bilayer. Niosomes can be used to carry both the amphiphilic and lipophilic drugs. Niosomes have a great potential in targeted drug delivery of anticancer and anti-infective agents. Niosomes are used to modify the drug release profile, drug absorption, distribution and elimination for the benefit of improving product efficacy and safety and improving patient convenience and compliance. They are very small and microscopic. Although they are structurally similar to liposomes, they offer several advantages over them. Niosomes are stable, less toxic and less expensive than liposomes. This review article represents the structure of Niosomes, its advantages and disadvantages, applications, method of preparation, and characterization techniques of Niosomes.