This study aimed to develop a donepezil hydrochloride (DH) transdermal drug delivery system to address non-compliance due to dementia in Alzheimer’s patients. DH has a low dose, balanced hydrophilicity/lipophilicity, and low toxicity making it suitable for transdermal. DH transdermal patches were prepared using a polymer and plasticizer matrix system via box-Behnken design and evaluated for properties. Formulation B2 containing hydroxy propyl methyl cellulose (HPMC), ethyl cellulose (EC), and xanthan gum was optimal, exhibiting a maximum of ~99.17% in-vitro drug release for 48 hours. In-vivo pharmacokinetic parameters studied in rabbits were superior to commercial DH tablets. The study demonstrates the potential for DH transdermal patches as an alternative to oral medication for Alzheimer’s patients. The patches can provide sustained release for prolonged periods without requiring multiple doses. However, further confirmation is needed via in-vivo pharmacodynamic and human pharmacokinetic studies.