Ethosomes are innovative lipid vesicular carriers containing a high percentage of ethanol. These nanocarriers are specifically designed for the efficient delivery of therapeutic agents with varying physicochemical properties into deep skin layers and across the skin barrier. The initial ethosomes formula has been modified by adding new compounds, resulting in the development of new types of ethosomes. Various preparation techniques are employed to create these novel carriers. For ease of application and stability, ethosome dispersions are incorporated into gels, patches, and creams. A wide range of in vivo models and clinical trials are used to evaluate their efficacy in transdermal delivery. Ethosomes are categorized into classical ethosomes, binary ethosomes, and transferosomes based on their constituents. The differences among these systems are discussed from several perspectives, including formulation, size, zeta potential, entrapment efficiency, skin-permeation properties, and stability. Ethosome formulations have demonstrated good physical and chemical stability when stored in a well-closed container at ambient temperature. This study provides a comprehensive review of the effects of ethosome constituents and preparation methods on the final properties of these nanocarriers. Additionally, recent advancements and future prospects of ethosomes are highlighted, along with detailed information on the evaluation studies conducted on ethosomes.