The objective of the present study was to develop and evaluate a nanolipid transdermal emulgel of Nimesulide. The nanolipid particles of Nimesulide were developed using Compritol 888 ATO and Labrafil M1944 as lipids, Polysorbate 80 as surfactant with Poloxamer 188 and Polyethylene Glycol 400 as stabilizer and cosolvent respectively. The nanoparticles were developed by Hot Nanoemulsification Low Temperature Solidification method and showed drug entrapment efficiency of 67 ± 2.316 % with particle size of 500 – 600 nm. TEM studies indicated presence of spherical particles in the nanometric range. The nanolipidic dispersions were suitably gelled to form emulgel. The in vitro release of the developed emulgel showed sustained drug release for 8 hours with no evidence of toxicity during histopathological testing after ex vivo permeation studies. The nanolipid emulgel of Nimesulide can thus provide sustained release action due to enhanced skin deposition for effective treatment of chronic arthritic conditions, thereby improving patient compliance.