The systemic delivery of Etodolac (ETO) often triggers side effects e.g., myocardial problems, bleeding, etc. thus impeding its clinical usage. Also, ETO exhibits unfavourable physicochemical properties, compelling the need for chronic dosing which could aggravate the condition. The transdermal route not only avoids the systemic toxicity but also enables site-specific action. Yet, the efficacy of this route is constrained due to skin barriers. In the present work, a choline geranate ionic liquid based transdermal gel (CAGE Ionogel) was prepared to improve permeation of ETO. The solubility of ETO increased by ∼19,600-fold in CAGE IL than water. TEM revealed the colloidal shape of ETO-CAGE IL. Moreover, ETO-CAGE Ionogel displayed sustained release for up to 48 h. The ex vivo permeation study revealed a higher flux (∼1.3-fold) than ETO gel. Cytotoxicity assay showed reduced IC50 (∼2.17) relative to ETO in RAW 264.7 cells. In vivo studies in CIA-induced model revealed a decrease in clinical signs of RA. X-ray imaging displayed reduced bone erosion and swelling. The toxicity study showcased no changes in biomarker level suggesting the safety of formulation. Skin compatibility study showed low TEWL implying suitability for topical delivery. The findings affirm the efficacy of transdermal ETO therapy in alleviating RA manifestations.