Rapid advancement in the field of colloidal science has shown a great progress in the development of proniosome technology (PT) as an impending drug delivery system. PT is a valuable carrier system for delivery of hydrophobic as well as hydrophilic drugs. It is a liquid crystalline compact niosomal hybrid, which upon hydration gives niosomes. They can augment the bioavailability of encapsulated drug and provide better therapeutic activity in a controlled manner. Non-toxicity, penetration enhancing the effect of surfactant and modified drug release from the proniosomal transdermal gel has attracted a greater attention of formulation scientist toward PT. Free flowing dry proniosomal powder are suitable for unit dosage forms such as tablet and capsules. Proniosomes are auspicious drug delivery system for the future. Proniosomes-derived niosomes are a better alternative to the other vesicular system due to their superior physicochemical stability and effective drug delivery capability. The focus of this review is to bring out all the aspects of proniosomes including their different compositions, various methods of preparation, characterization and recent development in their therapeutic applications.