Electrospinning is the method for preparing drug-loaded nanofibers with ultrafine structure, a large surface area to volume ratio, and a high porosity with a small pore size. Among the other nanofiber production methods, electrospinning is the most cost effective one with simple tooling and, it is applicable to produce ultrafine fibers with a simple step-up production for drug delivery applications. The selection of the polymer as carrier for electrospinning and the production procedure design is crucial due to drug-polymer-solvent interactions and the other process parameters which would influence the physicochemical biocompatibilityand characteristics. This technique can be applied to produce nanofibers of a wide array of polymer types: natural, synthetic polymers, or their blends. This review focuses on various electrospinning methods to produce drug loaded nanofibers, polymers used, electrospinning process parameters, their advantages and limitations for topical/transdermal drug delivery applications.