Liposomes are spherical vesicles composed of a lipid bilayer membrane enclosing an aqueous core. They can encapsulate both hydrophilic and hydrophobic drugs. Liposomes offer several advantages for drug delivery such as increased drug efficacy, reduced toxicity, and ability to target specific tissues. They are classified based on lamellarity and size. Common preparation methods include thin film hydration, reverse phase evaporation, and detergent removal. Key properties evaluated include particle size, surface charge, drug encapsulation efficiency, and drug release kinetics. Liposomes have applications as carriers for drugs, proteins, genes, and imaging agents.