Microsponges are polymeric delivery systems composed of porous microspheres. They are tiny sponge-like spherical particles with a large porous surface. Moreover, they may enhance stability, reduce side effects and modify drug release favorably. Microsponge technology has many favorable characteristics, which make it a versatile drug delivery vehicle. Microsponge Systems are based on microscopic, polymer-based microspheres that can suspend or entrap a wide variety of substances, and can then be incorporated into a formulated product such as a gel, cream, liquid or powder. The outer surface is typically porous, allowing a sustained flow of substances out of the sphere.Microsponges are porous, polymeric microspheres that are used mostly for topical use and have recently been used for oral administration. More and more developments in delivery systems are being integrated to optimize the efficacy and cost-effectiveness of the therapy.Microsponge technology offers entrapment of ingredients and is believed to contribute towards reduced side effects, improved stability, increased elegance, and enhanced formulation flexibility. In addition, numerous studies have confirmed that microsponge systems are non-irritating, nonmutagenic, non-allergenic, and non-toxic. Microsponges are being used currently in cosmetics, over-the-counter (OTC) skin care, sunscreens and prescription products. One of the best feature of microsponge is it is self-sterilizing. This review is based on method of preparation and applications of microsponges.