Phytosomes are a novel drug delivery system that enhances the bioavailability of herbal extracts by combining phyto-constituents with phospholipids, allowing for better absorption and therapeutic effects. They differ from liposomes in that phytosomes form a chemical bond with the phospholipids, resulting in improved stability and delivery efficiency. Applications include a variety of herbal extracts such as silymarin, grape seed, green tea, and curcumin, with significant benefits noted in liver protection and antioxidant activities.