ABSTRACTNanotechnology is the advancing technology which is based on the study of manipulating the matter on a Nano scale range, and it refers to the constructing and engineering of the functional systems at atomic level. Nanotechnology lead to the development of various types of novel drug delivery systems like liposomes, microparticles, niosomes and proniosomes. Liposomes and niosomes has some demerits like leaking, fusion, aggregation, distribution, transportation and storage. To overcome the demerits of both liposomes and niosomes, proniosomes are developed with enhanced physical stability during storage and transport as they are dry formulation of water soluble carrier encoated with the surfactant and drug encapsulated in the proniosomal vesicles, which helps in prolongation of duration of retention of drug in systemic circulation and by reaching the target tissue shows its action which results in reduced toxicity. This review mainly focusses on demerits of liposomes and niosomes, methods of preparation, characterization and applications of Proniosomes. Keywords: Liposomes, Niosomes, Proniosomes, Stability, Surfactant, Cholesterol, Characterization, Applications.