Liposomes are spherical vesicles made of phospholipid bilayers that can encapsulate aqueous solutions. They range in size from 20nm to several microns. Liposomes can be used to deliver drugs as they protect drugs from degradation and can target delivery to specific tissues. There are several types of liposomes classified by their structure, size, number of bilayers, and method of preparation. The main components used to form liposome bilayers are phospholipids like phosphatidylcholine and cholesterol. Liposomes offer advantages for drug delivery such as passive targeting to tumors, reduced toxicity, and improved pharmacokinetics.