Aim: The main objective of the current research work was to formulate and evaluate Diacerein-loaded transferosomal topical gel to overcome the drawbacks associated with oral administration of Diacerein in Osteo arthritis treatment.
 Study Design: Transferosomal topical gel
 Methodology: Transferosomes were developed using different ratios of Phospholipid® 90G as phospholipid and Span-60 as surfactant and cholesterol as fluidity buffer. The selected best formulation of transferosomes was further optimized as a topical gel using different rate controlling polymers such as hydroxylethyl cellulose (HEC), hydroxyl propyl methylcellulose (HPMC) and, carbopol. Transcutol P was used as a penetration enhancer. In vitro diffusion studies of developed formulations were carried out using Franz diffusion cell apparatus.
 Results: The formulations prepared with Hydroxy ethyl cellulose (TBG1, TBG2, TBG3), HPMC (TBG4, TBG5, TBG6) was shown rapid drug release when compared to formulations prepared with carbopol (TBG7, TBG8, TBG9) are showing controlled drug release.Where the formulation prepared with carbopol with 0.75% concentration has shown acceptable extended drug release for 12 hours with acceptable other physico-chemical properties.
 Conclusion: It can be concluded that Diacerein-loaded transferosomal gel can be administered topically for the treatment of osteoarthritis with reduced oral side effects.