Phytomedicines are becoming more popular in the world for their ability to cure diseases with less toxicity and better therapeutic efficacy. Herbal medicines may also have disadvantages of poor bioavailability, toxicity, stability issues and patient compliance. In order to minimize these problems various drug delivery systems such as liposomes, phytosomes, niosomes, ethosomes and trasferosomes etc are being developed for phytomedicines. Novel drug delivery systems can improve bioavailability of drug that refers to the existence of drugs in the body part where they are actually needed. Ethosomes are noninvasive flexible vesicular carriers that enable the drugs to permeate through the deeper layers of skin and systemic circulation. They are mainly composed of phospholipids, high concentration of ethanol and water. As ethanol is known for its disturbance of skin lipid bilayer arrangement; therefore, inclusion of ethanol into a vesicular membrane provides the ability of vesicle to permeate through the stratum corneum. The high flexibility of ethosomal carrier from the added ethanol allows the elastic carrier to squeeze through the skin pores. Herbal ethosomal formulation has been effectively used to enhance bioavailability of many herbs including Glycyrrhiza glabra, Sophora alopercuroides, Cannabis sativa, Sesbania grandiflora and Podophyllum hexandrum