Now a days, The novel drug delivery system is creating a new interest in development of drug deliveries. Vesicular drug delivery system in also a part of this novel drug delivery system which is designed according to the recent demands of treatment like sustain release of drug in systemic circulation, definite dosing interval. Transferosomes are part of this vesicular drug delivery system which are altered deformable vesicles used to enhance skin penetration. It is also a controlled & targeted drug delivery system which is used to increase the existence of drug in systemic circulation & decrease the toxicity.Transferosomes are proposed for variety of applications in humans like as carrier for insulin & vaccines. In this review, we mainly focus on transferosome with its applications, limitations, advantages & preparation.