Over the past decade, numerous limitations of conventional dosage forms had attracted researchers to find a rational and appropriate drug delivery system. Microsponges were developed and studied as a novel programmable delivery system which is intended to deliver drug in controlled release pattern. It also aims epidermal localization of topical drug therapy to reduce their side effects by limiting systemic absorption through skin. Drug loaded microsponges are microporous beads, typically 10-25 µm in diameter which can entrap a wide variety of actives and can be formulated as creams, lotions, gels, ointments, powders, soaps. Microsponge formulations can increase product stability, enhance aesthetic qualities, and provide formulation flexibility and stability. Moreover, their non-antigenicity, non-toxicity, non-mutagenicity and non-biodegradability make them favourable candidates. Microsponge approach has also been applied in oral therapy, bone, tissue & cartilage engineering and showed remarkable results. This article provides description about the nature of microsponges, their characteristics, preparation, applications and commercial market status globally.