This document discusses phytosomes, a novel drug delivery system for herbal extracts. Phytosomes improve the bioavailability of plant extracts by combining phytoconstituents with phospholipids. This allows poorly soluble botanical extracts to be better absorbed in the intestinal tract and cross membranes. The document describes the preparation, characterization, formulation and commercial uses of phytosomes. Some benefits are improved stability and absorption compared to simple herbal extracts. Commonly used phospholipids are phosphatidylcholine, phosphatidylethanolamine and phosphatidylserine.