This paper is a review of the latest developments in the field of topical drug delivery via which the drug is directly applied onto the skin with high selectivity and efficiency. Advances in microfiber-based medical textiles such as sutures and wound dressings, especially those containing a drug or an antimicrobial agent, have been covered briefly. A special focus is on recent developments in the area of nanofibrous drug delivery systems, which have several advantages due to their large surface area to volume ratio, high porosity and flexibility. The electrospinning technique to produce nanofibers has also been discussed with reference to latest advances such as multiple needles, needleless and coaxial forms of electrospinning. The applications of nanofibers in different areas such as wound dressing, periodontal and anticancer treatment have also been discussed.