Vesicles prepared from self-assembly of hydrated non-ionic surfactants molecules are called niosomes. These types of vesicles were first reported in the cosmetic industries. Niosomes exhibit more chemical stability than liposomes (a phospholipids vesicle) as non-ionic surfactants are more stable than phospholipids. Non-ionic surfactants used in formation of niosomes are polyglyceryl alkyl ether, glucosyldialkyl ether, crown ether, polyoxyethylenealkyl ether, ester-linked surfactants, and steroid-linked surfactants and a spans, and tweens series. Niosomes preparation is affected by processes variables, nature of surfactants, and presence of membrane additives and nature of drug to be encapsulated. This review article presents an overview of theoretical concept of factors affecting niosome formation, techniques of noisome preparation, characterization of niosome, applications, limitations and market status of such delivery system.