Liposomes are small artificial vesicles created from cholesterol and phospholipids that resemble cell membranes. They are promising for drug delivery due to their biocompatibility and ability to encapsulate both hydrophilic and hydrophobic drugs. Liposomes are classified based on size, number of bilayers, composition, and preparation method. They can be prepared using techniques like film hydration, extrusion, sonication, and solvent injection. Coating liposomes with polymers like PEG creates stealth liposomes that have longer circulation times in the body.