Niosomes are non-ionic surfactant based vesicles that can be used for drug delivery. They have several advantages including increased drug stability, biocompatibility and ability to target delivery. Niosomes are prepared using non-ionic surfactants which form bilayer vesicles encapsulating the drug. Preparation methods include thin film hydration, sonication, microfluidization. Niosomes can be characterized for size, entrapment efficiency and release kinetics. They have applications in delivery of anti-cancer drugs, peptides, vaccines and transdermal delivery due to their ability to enhance skin permeation.