A novel drug delivery system is that delivers drug at predetermined rate decided as per the requirement, pharmacological aspects, drug profile, physiological conditions of body etc. In current conditions not a single novel drug delivery system behaves ideally those high goals with fewer side effects. A Vesicular drug delivery system is the system in which encapsulation of active moieties in vesicular structure which bridges gap between ideal and available of novel drug delivery system. Various types of vesicular drug delivery system like liposomes, niosomes, transferosomes, phytosomes and aquasomes are used to improve the new drug molecules by encapsulating an active medicament inside vesicular structure in one such system. It prolongs the existence of the drug in systemic circulation and finally reduces the toxicity. Such different systems are widely used in gene delivery, tumor targeting to brain, oral formulations, in stability and permeability problems of drugs. In this review we really focused on different aspects of vesicular system in terms of its advantages, limitation, applications and different marketed product of vesicular system as novel drug delivery.