Nanogel nanoparticles loaded with active compounds are referred to as Drug-loaded polymeric colloidal nanogels (DPCNs). These nanogels are emerging as promising carriers for transdermal drug delivery applications. Much interest has been directed towards the potential use of DPCNs to deliver a variety of drugs for either controlled or sustained drug delivery systems. Transdermal drug delivery systems (TDDS) have shown a number of beneficial properties such as improving patients compliance as they are conveniently dosed compared to intravenous and oral therapy. The use of TDDS depends on the effectiveness of the drug formulation to accumulate in sufficient concentrations at the specific targeted sites, hence the therapeutic significance of DPCNs in TDDS. Nanogels have a high drug loading capacity, biodegradability and biocompatibility, which are the key points in designing an efficient TDDS. The advanced development of DPCN has led to stimuli responsive drug delivery systems that release the entrapped drug under variable environmental incentives. The development of these drug delivery systems has created room for further research to characterize the physical and chemical properties of theses nanogels as well as their in vitro and in vivo behavior. Therefore this review presents an insight on the basic fabrication methods, advanced developments, limitations and therapeutic significance of the DPCN in TDDS as well as forthcoming potential applications. Despite these numerous positive scientific findings, efficient TDDS remains a challenge for pharmaceutical scientists and significant amount of research is still directed toward the development of superior TDDS.