Ethnobotanical plants have been used in the treatment of various diseases since antiquity. The phytoconstituents have pharmacological activities such as anti-tumor, anti-inflammatory, antinociceptive, anti-obesity, thermoregulatory effects, cardioprotective, anti-asthmatic, anti-diabetic, anti-oxidant, hepatoprotective and potent CNS activities. Various drug delivery systems like liposomes, niosomes, transferosomes, ethosomes, phytosomes, colloidosomes etc. are developed in order to carry the drug to the site of action without its metabolism. The major concern with respect to phytoconstituents having different chemical nature is its bioavailability and effective dosage concentration which could be overcome by means of phytosome technology. Chemically, phytosomes are vesicles of phospholipids bonded with a hydrogen bond to phytochemical/s. The current review highlights the major therapeutic applications of phytosomes till date. The review discusses about a latest and novel drug delivery system viz. "Phytosome technology" whereby major emphasis has been provided on the different therapeutic applications of phytosomes and its crucial role in managing the conventional complications that are encountered for the delivery of phytoconstituents. Applications of phytosomes such as enhancing bioavailability, anti-cancer and anti-oxidant agent, transdermal delivery, wound healing capacity etc. have been discussed. The comparison between the therapeutic activities of free drug and its phytosomes indicates that the complex provides various advantages over the conventional treatments.