Rheumatoid Arthritis (RA), an autoimmune disease, is a chronic inflammatory disorder affecting the joints leading to severe damage and cartilage destruction. Current therapies for RA such as DMARDs, NSAIDs, glucocorticoids, and phytoconstituents often face challenges related to solubility and transdermal permeability. Considering the barriers posed by the stratum corneum in transdermal drug delivery, ethosomes have shown promising results in overcoming these hurdles. The presence of ethanol in ethosomes imparts flexibility and disrupts the skin's lipid bilayer, allowing for transdermal penetration. Researchers have explored the potential of ethosomal drug delivery systems loaded with various synthetic drugs and phytoconstituents for the management of RA. Despite promising preclinical findings, these systems have yet to transition from the bench to the bedside, and there is a lack of comprehensive review papers highlighting the potential of ethosomes in RA treatment. Considering the commercial challenges in scaling up such nano systems, this review aims to analyse the current state of the art and advancements in ethosomal formulations loaded with synthetic agents and phytoconstituents. Further, it explores the impact of excipients and processing parameters, on the preparation of ethosomes and their efficacy in overcoming skin barriers, to enhance the permeability of therapeutic agents.