Background: Diacerein is an anthraquinone derivative belonging to class 2 BCS drug. The drug is well known for its application in the treatment and management of osteoarthritis. When taken orally the drug has several limitations such as diarrhoea, gastrointestinal disturbance, and discoloration of skin and eyes. This needs the development of alternative dosage forms to improve bioavailability. The present research work aimed to prepare ultradeformable vesicles that are transferosomes of diacerein using Acacia concinna as a natural surfactant which effectively deliver the drug and provides symptomatic relief in the management of osteoarthritis. A full factorial design was employed to optimize the formulation. Transfersomes were then converted into gel using carbopol 934 by simple homogenization technique.