Asthma is classified as chronic disease causing inflammation of the airways. Terbutaline sulphate is a synthetic β2-adrenoceptor stimulant used mainly in respiratory medicine. It has short half-life 3.4 hours so the study was done to evaluate the possibility of application of terbutaline sulphate loaded polymeric nanoparticles as transdermal drug delivery systems to give a sustained release dosage form. The technique that was chosen for the preparation of different formulae was ionic gelation method using tripolyphosphate and chitosan polymers and these formulae were evaluated for their polydespersity index and particle size. The most suitable formula (F5) was evaluated by entrapment efficiency and zeta potential. The nanoparticle suspension was incorporated in hydroxypropyl methylcellulose gel base and evaluated for visual appearance, pH, rheological properties and in-vitro release. The hydrogel was then evaluated for ex-vivo skin permeation. The chosen formula showed particle size 160.1 nm, entrapment efficiency 70.1, polydespersity index 0.336 and zeta potential 20.1 mv. The hydrogel showed good homogeneity with slightly whitish colour with pH 6.4 and the gel exhibited Higuchi diffusion model. In vitro test showed sustained release profile within 24 hours and the ex vivo test showed high permeation rate within 3 hours.