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Hyperpigmentation is one of the most common skin disorder that affects both men and women of all ethnic groups, caused by several factors, such as UV exposure and skin inflammation. Topical whitening agents were found to be the best and the least aggressive therapy for treating hyperpigmentation compared to instrumental approaches. However, topical treatment faces several obstacles due to the low stability of the whitening agents. Therefore, the encapsulation of these agents was found to be crucial as it enhances their physicochemical stability and increases their concentration at the targeted site via an improved skin permeation, penetration or distribution. In this article, we review the literature aimed to enhance the stability and the targeting of skin whitening agents through their encapsulation in various nano and micro-particulate systems.