The aim of present study was to design and development of a proniosomal transdermal drug delivery system of lornoxicam for the treatment of rheumatoid arthritis and enhanced skin targeting effect, sustained & prolonged drug release, enhanced skin bioavailability by using different type of non ionic surfactant & cholesterol. Proniosomes of Lornoxicam were prepared by coacervation-phase separation method. The formulation systems were characterized in vitro for size, vesicle count, drug entrapment, drug release profile and vesicular stability. The method used for preparing proniosome resulted in an encapsulation yield of 67.71-87.64%. Proniosomes were characterized by transmission electron microscopy. In vitro studies showed prolonged release of entrapped lornoxicam. A successful attempt was made to develop proniosomal gel for transdermal delivery of lornoxicam using different grades of nonionic surfactant.