Liposome and Niosome have been studied world wide as a drug carrier, still unable to explore significantly in pharmaceutical market. This monograph will discuss the critical issues and explain with examples. The skin permeation of antibacterial agent, bacitracin zinc, in liposomes and niosomes, after topical application, were elucidated in the present study with aimed to increase its penetration capacity, to avoid systemic administration toxicity and hence improve efficiency. Further, with aceclofenac to avoid the irritation of gastrointestinal tract, minimize systemic toxicity and achieve a better therapeutic effect, warrants the use of sustained release formulation. The aim of this work was to form a complex of aceclofenac with hydroxyl propyl ? cyclodextrin and then encapsulate the same complex into niosome vesicles and to characterize for different physicochemical properties and to investigate the potential of niosomes entrapped aceclofenac/Hydroxy Propyl-?-Cyclodextrin (HP-?-CD) as anti-inflammatory drug delivery.