Niosomes are non-ionic surfactant vesicles obtained on hydration of synthetic nonionic surfactants, with or without incorporation of cholesterol or other lipids. They are vesicular systems similar to liposomes that can be used as carriers for amphiphilic and lipophilic drugs. The main aim of this study is to formulate niosomes as carriers for delivery of Stavudine. Stavudine niosomes were prepared by ether injection method and thin film hydration method using drug, non-ionic surfactants(Span 20 and Span 80) and cholesterol in the ratio of (1:2:2, 1:4:2). The prepared niosomes were evaluated for the particle size and entrapment efficiency. The four formulations were prepared by thin film hydration and four formulations of were prepared by ether injection method. All eight formulations were compared for the evaluation parameters. The in-vitro drug release studies were performed for all the formulations (F1-F8) in phosphate buffer pH 7.4.Among the four formulations F4 formulation containing span 80 prepared by ether injection method was found to be best with entrapment efficiency of 79.42%, mean vesicular diameter of 4.80 ?m and percentage of drug release was found to be 90.23%. Among the four formulations of thin film hydration technique F8 formulation containing span 80 was found to be best with entrapment efficiency of 83.25%, mean vesicular diameter of 2.41 ?m. The percentage of drug release was found to be 96.12%. The encapsulation efficiency was found to increase when the surfactant concentration increases. The drug release for all the formulations was found to be zero order, which indicated that the drug release is independent of concentration and further the mechanism of drug release was found to be diffution controlled drug release. On comparing the all formulations of these two techniques F8 was considered as best formulation because of its more entrapment efficiency, high in-vitro drug release rate and greater stability