The major hindrance in transdermal delivery of drugs is complex barrier of stratum corneum.     New generations lipid based nano-system, particularly transethosomes have ability to permeate from rigid network of stratum corneum. They have proved to be a promising tool for the transport of drugs. This article reviews these ethanol-based, elastic, and deformable vesicles. The major components that provide the vesicles their distinct properties are phospholipids, ethanol, edge activator, and water. Ethanol imparts softness and edge activator increases the permeation by providing elasticity, making it possible to deliver drug molecules in blood. It is a non-invasive technique that can be used as a carrier for NSAID, anticancer, antifungal, and antihypertensive, among other drugs.