Niosomes are non-ionic surfactant based liposomes. Niosomes, the novel drug delivery system are self assembled vesicles primarily of synthetic surfactant incorporated with cholesterol as an excipient. They are the vesicles formed by hydrating the cholesterol and non-ionic surfactant. The main aim of niosome includes use of drug in efficient manner which includes reduced dose, reduced side effect, reduced dosage frequency, greater patient compliance and maximum concentration at the site of action so, that under exposure to the entire body. It includes higher therapeutic efficiency and reduced side effect. Niosomes are thought to be the better candidate’s drug delivery system due to the various factor like cost, stability, etc. various types of drug delivery is possible using niosomes like targetting drug action, ophthalmic, topical, parenteral, etc. Drug delivery potential of niosomes can be enhanced by using novel concept like proniosomes, discomes and aspasomes. Niosomes serves better aid in the diagnostic imaging and as a Vaccine adjuants.this article focuses on the recent advances in niosomal drug delivery, formulation methods, and methods of characterization and current researches in the field of niosomes.