The rising incidence of skin disorders has necessitated the exploration of innovative therapeutic modalities that harness the beneficial properties of natural compounds. Phytoconstituents, renowned for their diverse pharmacological attributes, present considerable promise in the management of various dermatological conditions. This review delineates the integration of phytoconstituents into ethosomal formulations, which are advanced lipid-based carriers specifically designed to enhance transdermal delivery. We discuss the advantages conferred by ethosomes, including their capacity to improve the stability and bioavailability of phytochemicals, facilitate deeper skin penetration, and provide controlled release profiles. Recent advancements in the formulation of ethosomes encapsulating a variety of phytoconstituents are highlighted, with a focus on their physicochemical properties, therapeutic efficacy, and safety profiles. Furthermore, the review examines the mechanisms by which ethosomes enhance the delivery of bioactive compounds to targeted skin layers, particularly in the context of treating conditions such as acne, eczema, and psoriasis. Challenges associated with formulation stability and scalability are also addressed, along with potential future research directions in this domain. By synthesizing current knowledge and identifying existing gaps, this article aims to provide a comprehensive overview of phytoconstituent-based ethosomes as a promising strategy for the development of effective and safe topical therapies for skin disorders. Ultimately, this review underscores the potential of these innovative formulations to improve patient outcomes and contribute significantly to the advancement of dermatological treatment options.