Abstract : Transferosomes are highly deformable lipid-based vesicular carriers developed to overcome the barrier properties of the stratum corneum and enhance topical and transdermal drug delivery. Unlike conventional rigid vesicles, transferosomes contain phospholipids and edge activators that provide membrane flexibility and enable the vesicles to deform and pass through narrow intercellular pathways within the skin. This unique property allows transferosomes to accommodate and transport a wide range of therapeutic agents, including hydrophilic, lipophilic, peptide, protein, and other macromolecular drugs. Various preparation approaches, including thin-film hydration, ethanol injection, reverse-phase evaporation, homogenization, freeze–thaw cycling, and extrusion, have been investigated for producing transferosome formulations with desirable vesicle characteristics. Important formulation and process variables include phospholipid and edge-activator concentration, solvent composition, hydration medium, vesicle size, and processing conditions. Characterization involves evaluation of vesicle size, morphology, entrapment efficiency, deformability, zeta potential, drug content, in-vitro release, skin permeation, and stability. Transferosomes have demonstrated potential applications in transdermal immunization, insulin and protein delivery, anticancer therapy, antifungal treatment, and corticosteroid delivery. Despite their advantages, challenges associated with formulation stability, manufacturing complexity, drug-loading capacity, excipient safety, and regulatory acceptance remain. Future development is expected to focus on optimized and scalable manufacturing, combination with physical penetration-enhancement techniques, targeted and stimuli-responsive systems, and application in biologic drug delivery. Overall, transferosomes represent a promising platform for improving the efficiency and versatility of topical and transdermal drug delivery.