Capsaicin is one of the active compounds contained in chili. Capsaicin has been shown to have analgesic, antioxidant, anticancer and anti-obesity properties. Capsaicin formed into transethosome vesicles expected to increase its skin penetration. Transethosome is a vesicle composed of phosphatidylcholine, surfactant, and ethanol. In this study, Capsaicin transethosome was prepared by two methods, which were direct method and thin-layer hydration method. The aims of this study were to determine the effect of the method used to made transethosome on its characteristics and to evaluate the penetration of transethosome capsaicin gel. Transethosome with thin-layer method had better characteristics with particle size of 174.9 ± 2.02 nm and the entrapment efficiency of 84.85 ± 1.15%. The transethosome suspension were incorporated into 1% carbomer gel. In vitro penetration study of transethosome gel compared with capsaicin gel were performed using rat abdominal skin as the permeating membrane in Franz diffusion cell. Transethosome gel and capsaicin gel had cumulative amount of capsaicin penetrated 1549.68 ± 49.6μg/cm2 and 846.05 ± 10.1 μg/cm2, respectively. Therefore it can be concluded that transethosome gel can increase the penetration of capsaicin through skin