Liposomes are found to be having passively targeted drug carrier to tumor cells because of its enhanced permeability and retention effect. Liposomes remain at the front of the drug delivery systems owing to its non-toxic, bio-degradable and non-immunogenic nature. It has been explored as carrier for delivery of drug molecules such as protein and peptides, genes, vaccines, genosomes, lipopolyplex, fusogenic liposomes and virsomes, etc. Stealth liposomes utilized for targeting hydrophilic anticancer drugs such as doxorubicin, mitoxantrone, etc. Still there is quest in developing drug delivery and drug targeting system utilizing liposomal formulations in the thrust area of cancer chemotherapy, antiviral, and such other biotechnological products.