Lipid-based formulations have emerged as prospective dosage forms for extracting the therapeutic effects of existing lipophilic compounds and novel chemical entities more efficiently. Compared to other excipients, lipids have the added benefit of enhancing the bioavailability of lipophilic and highly metabolizable drugs due to their unique physicochemical features and similarities to in vivo components. Furthermore, lipids can minimize the needed dose and even the toxicity of drugs with poor aqueous solubility when employed as the primary excipient. Hence, the aim of the present review is to highlight the functional behavior of lipid excipients used in SNEDD formulation along with the stability aspects of the formulation in vivo. Moreover, this review also covered the importance of SNEDDS in drug delivery, the therapeutic and manufacturing benefits of lipids as excipients, and the technological advances made so far to convert liquid to solid SNEDDS like melt granulation, adsorption on solid support, spray cooling, melt extrusion/ spheronization has also highlighted. The mechanistic understanding of SNEDD absorption in vivo is highly complex, which was discussed very critically in this review. An emphasis on their application and success on an industrial scale was presented, as supported by case studies and patent surveys.