Microemulsions have gained a great interest as a second generation colloidal carrier systems for the dermal as well as transdermal delivery of the various hydrophilic and lipophilic drugs. It has several advantages such as enhanced drug solubility, good thermodynamic stability, ease of manufacturing and enhanced therapeutic effect. Microemulsion can be easily prepared due to spontaneous formulation; leading to increased drug loading and high penetration through biological membranes. An increased bioavailability and less inter and intra individual variability in drug pharmacokinetics is observed with microemulsion based delivery systems. These advantages make it an attractive alternate to conventional formulations for dermal route of delivery. In order to improve the patient compliance microemulsion can be further converted in the form of gels by employing suitable polymers that are capable of modifying rheological behavior of microemulsions. These microemulsion based gels amalgamate benefits of micremulsions and gels, thus help to achieve improved aesthetic appeal of the product, ease of handling and better skin permeation.