Skin cancer is still a major world health issue, and the death and incidence rates are rising. While standard therapies like chemotherapy, radiotherapy, and surgery are available, they often have problems like drug resistance, systemic toxicity, and not being able to target the right area. Polymer-based drug delivery systems (DDSs) have become a potential alternative in recent years. They make drugs more bioavailable, less toxic to the body as a whole, and easier to control and target. This review talks about the latest progress made in polymer-based DDSs for skin cancer and shows how they can be used to diagnose and treat the disease. A lot of research has been done on biocompatibility, stability, and effectiveness of key kinds of polymers, such as natural, synthetic, and copolymers. A total of 33 studies were looked at, with a focus on new polymer systems designed for skin cancer treatment, such as hydrogels, micelles, nanoparticles, nanofibers, and dendrimers. Aside from that, the study also talks about different ways to diagnose problems using polymer carriers and imaging agents. The literature was gathered by searching databases in a planned way and then choosing what to include based on its scientific value and usefulness. Problems like harm, expense, instability, and government restrictions were named, and suggestions for the future were made, such as personalized treatment and hybrid systems. Overall, polymer-based DDSs are going to change the way skin cancer is treated by making it more effective, safer, and more focused.