Ethosomal systems are newer lipid vesicular carriers that have been around for 20 years, but over that period they have grown significantly as a means of transdermal drug delivery. They have a sizable amount of ethanol in them. These nanocarriers carry medicinal substances with various physicochemical qualities throughout the skin and deep skin layers. Since they were created in 1996, ethosomes have undergone substantial investigation; new substances have been added to their original composition, creating new varieties of ethosomal systems. These innovative carriers, which can be added to gels, patches, and lotions, are prepared using several novel methods. In addition to clinical trials, many in vivo models are employed to assess the effectiveness of dermal/transdermal administration. This review focuses on different generation of ethosomes and their comparison with other conventional liposomes.