Caralluma fimbriata (Makadshenguli) belongs to the family of Asclepiadacea. The plant has antiinflammatory, antibacterial, antimalarial, antioxidant, antipyretic, anthelmintic and antifungal activities. The stable gel formulation containing ethosomes loaded with Caralluma fimbriata extract was prepared and evaluated for topical drug delivery. The extract was screened for phytochemical investigation. It was quantified for total flavonoid content using instrumental techniques. Ethosomes were prepared using the cold method incorporating Caralluma fimbriata, in ethanol, propylene glycol and phospholipid. Caralluma fimbriata extract was incorporated in ethosomal preparation and the effect of phospholipid and ethanol concentration on the therapeutic action of Caralluma fimbriata were studied. The prepared ethosomes were evaluated by Design Expert Software and parameters such as Entrapment Efficiency (EE), Zeta Potential (ZP), Particle Size, and In-vitro drug release were studied. The prepared Ethosomal gel was evaluated by pH measurement, homogeneity, viscosity, spreadability, texture analysis, gelling time, drug content, and In-vitro drug release.