<p>Nano-enabled topical drug delivery system is a promising strategy for the delivery of therapeutic bioactives to the skin. Recent advances have made the nano lipid carriers as most significant for the topical application. The composition of these carrier systems is based on lipids that become stabilized by surfactants with high loading efficiency. In topical targeting, these nano lipid systems become closely in contact with the stratum corneum due to their optimal size. The lipid present in the nano-lipid carrier mimics the mechanism of skin lipids that enhances the permeation of these nanocarriers inside the skin layer and enhances their retention, as well as extends the therapeutic effect. These characteristics enable these systems to overcome the challenges confronted by topical drug delivery. They become the foundation for the development of next-generation drug carriers. This review focuses on the significant potential of such nano-sized lipid formulations, their composition, types, and application to skin disorders.</p> Graphical Abstract <p></p>