Micellar systems, particularly polymeric micelles, have emerged as a promising drug delivery vehicle for water-insoluble compounds. Polymeric micelles, self-assembled nanostructures made from amphiphilic block copolymers, have emerged as a promising drug delivery vehicle for water-insoluble compounds. These micelles offer high drug loading capacity, stability, and the ability to solubilize large amounts of hydrophobic drugs, making them an attractive option for delivering drugs with limited solubility and bioavailability. Their small size allows for efficient delivery and targeting of specific tissues or cells, reducing off-target effects and improving therapeutic outcomes. This review provides a brief overview of drug delivery system challenges, solutions, techniques of micelle formation, factors affecting micelle stability and drug loading, applications, pharmacokinetics and pharmacodynamics of micellar formulations, toxicological considerations, limitations, recent advancements, and clinical trials of micelles in drug delivery. By addressing these key aspects, this review seeks to provide a comprehensive understanding of the current status and prospects of polymeric micelles as a promising drug delivery system.