The skin acts as a great barrier against dermal drug delivery, posing a major problem associated with the low bioavailability of topically applied drugs. Submicron-sized carriers, termed nanocapsules, with a core–shell structure, appear to represent a promising approach to ameliorate these limitations and enhance drug delivery through the skin. In this chapter, the current state of the art in the application of nanocapsule-based dermal drug delivery is described briefly. This chapter aims to explain the main advantages and mechanisms by which nanocapsules increase dermal drug absorption through improved drug solubility, controlled release, and penetration through the skin. This chapter discusses different types of nanocapsules, including polymeric, lipidic, and hybrid systems; fabrication methods; and factors affecting their performance. Additionally, recent developments in the design of nanocapsules, including the use of stimuli-responsive and targeted delivery systems, are discussed. Overall, the platform of nanocapsules appears to be easily tunable for optimizing dermal drug delivery. Rationally designing nanocapsules and utilizing their unique properties allows researchers to devise new strategies for addressing the obstacles involving dermal drug delivery and treating skin diseases. However, ultimately, the long-term safety and scalability of these systems need to be addressed for their potential for successful clinical translation.