Ethosomal system is a lipid vesicular nanocarrier that hold a high concentration of alcohols. These nanocarriers are optimized for the dermal and transdermal delivery of medicinal drugs with various physicochemical features. Since its release in 1996, ethosomes have been subjected to subsequent studies to modify the original formula via the addition of different components, leading to the development of novel ethosomal system types. These new carriers are prepared via a variety of methods and characterized through different parameters, including vesicular size, zeta potential, entrapment efficiency, and skin permeation. The ethosomes efficacy in dermal/transdermal administration is evaluated via clinical studies as well as a wide range of in vivo models. Ethosomal dispersions are frequently incorporated into topical preparations, including gels, patches, and lotions, due to their stability and convenience. This article provides a thorough overview of ethosomal systems from the standpoint of ethosomal types, beginning with classical ethosomes and progressing to binary ethosomes and transethosomes. In addition, this work provides a comprehensive overview of the components of the ethosomal system and their contribution to the final properties of ethosomes, besides highlighting the different methods of preparation and the common dosage forms used as ethosomes' vehicles.