Morinda citrifolia L. is widely used in pharmaceuticals for its antidiabetic, antioxidant, and anti-inflammatory properties. Niosomes, non-ionic surfactant vesicles were combined with Propylene Glycol (PG) as a stabilizing agent to enhance the bioavailability of poorly water-soluble drugs. M. citrifolia extract loaded into niosomes to facilitate drug delivery. The extract was obtained using Subcritical Water Extraction (SWE) at 140 °C. Niosomes were prepared with Thin Film hydration method and PG concentrations ranging from 1–10%, followed by homogenization and ultrasonication for size reduction. The niosomes were analyzed for stability by evaluating encapsulation efficiency (EE) using centrifugation, pH, particle size, and zeta potential over 15 days. The highest PG concentration of 10 ml showed the best EE (99.13% at 4 °C and 99.15% at 25 °C for scopoletin, and 98.84% at 4 °C and 98.9% at 25 °C for rutin), alkaline pH, and optimal particle size (363.6 nm). Drug release tests using the dialysis membrane method over 8 days revealed that the formulation with the highest PG demonstrated controlled release with Korsmeyer-Peppas Model, whereas formulations without PG had fast release. In conclusion, M. citrifolia extract encapsulated in niosomes with PG shows high stability and controlled release, making it a potential candidate for oral antidiabetic administration.