Microsponge is recent novel technique for control release as well as target specific drug delivery system. Therefore many researchers are attracted towards the microsponge drug delivery system. Microsponge technology has been introduced in topical drug products to increase the controlled release of active drug into the skin in order to reduce entry of drug in blood and maintain drug on skin surface. Microsponge technology offers entrapment of ingredients, improved stability, reduced side effects, increased elegance, and enhanced formulation flexibility. Various studies have shown result that microsponge systems are non-irritating, non-allergenic, nonmutagenic, and non-toxic. This technology is used currently in cosmetics, over-the-counter (OTC) skin care, sunscreens and prescription products. This technology has the best feature that it is self-sterilizing. In this article we focused on method of preparation, characterization (Particle size and its distribution, surface morphology, porosity, density are covered), advantages, disadvantages and application of microsponge.