The present study was aimed at the overall improvement in the efficacy, reduced toxicity andenhancement of therapeutic index of aceclofenac. Niosomal delivery system of aceclofenac has beendeveloped by various techniques using mixture of Span 60/40 (surfactant) along with cholesterol in1:1 ratio. The formulations were then characterized with respect to vesicle diameter, drug content,entrapment efficiency, in-vitro drug release and release kinetics. The formulated aceclofenac niosomeswere discrete and round in shape. The lowest entrapment efficiency was found to be 75% (F2) andwas highest in reverse phase evaporation method 95% (F5). Percentage cumulative drug release waswell retarded for up to 24 h in F5 (59%) compared to all other formulations and its release pattern wasanalysed by using various mathematical models and found to follow under zero order kinetics. From thet50% values of F5, it is concluded that the reverse phase evaporation method seems to extend the drugrelease for prolonged period.