Niosome are non-ionic surfactant vesicles obtained on hydration of synthetic nonionic surfactants, with or without incorporation of cholesterol or their lipids. They are vesicular systems similar to liposomes that can be used as carriers of amphiphilic and lipophilic drugs. Noisome are promising vehicle for drug delivery and being non-ionic; and Niosomes are biodegradable, biocompatible nonimmunogenic and exhibit flexibility in their structural characterization. Niosomes have been widely evaluated for controlled release and targeted delivery for the treatment of cancer, viral infections and other microbial diseases. Niosomes can entrap both hydrophilic and lipophilic drugs and can prolong the circulation of the entrapped drug in body. Encapsulation of drug in vesicular system can be predicted to prolong the existence of drug in the systemic circulation and enhance penetration into target tissue, perhaps reduce toxicity if selective uptake can be achieved. This review article focuses on the advantages, Disadvantages, preparation methods, factors affecting, characterizations, invitro methods, drug release kinetics and applications of noisome.