Drug delivery technologies have significantly boosted the potential for treatment of herbal medicines. Traditional herbal preparations generally struggle with instability, low absorption, and limited medicinal efficacy. Innovative herbal drug delivery systems, including transfersomes, ethosomes, niosomes, liposomes, and phytosomes, have showed promise in addressing these limitations. The solubility, stability, and bioavailability of phytoconstituents are improved by these vesicular carriers, which raises the therapeutic efficacy of herbal medications. Hydrophilic and lipophilic molecules are encapsulated in phospholipid bilayers to form liposomes, which provide targeted delivery and prolonged release. Phytosomes are intended to increase the absorption of plant extracts by forming complexes with phospholipids that increase their bioavailability. Non-ionic surfactant-based vesicles, or niosomes, offer comparable advantages to liposomes at a lower cost. Alcohol, water, and phospholipids make up ethosomes. Niosomes, which are vesicles based on non-ionic surfactants, offer comparable advantages to liposomes at a lower cost. Ethosomes, which are made up of water, alcohol, and phospholipids, allow phytoconstituents to be delivered trans dermally more effectively and penetrate the skin more deeply. For transdermal applications, transfersomes—highly deformable vesicles—offer superior skin penetration. This review explores the fundamentals, preparation techniques, and medicinal advantages of these novel vesicular delivery systems for herbal medications. These systems have a lot of potential to improve the efficacy of traditional herbal treatments by resolving issues such as the unstable, poorly soluble, and limited bioavailability of herbal ingredients. Modern nanotechnologys integration with herbal formulations is a paradigm shift that will enable future herbal medicine to offer more effective, focused, and patient-friendly treatments.