This study aims to prepare and optimize lovastatin-beta-cyclodextrin loaded liposomal gels using Stat-Ease Design-Expert software (DX11). The effect of major preparation variables, cholesterol, Poloxamer 188 and Span 80 on globule size, refractive index, drug release 24th hour, viscosity, gel strength and spreadability are studied with factorial design. Various parameters of liposomal gels were characterized which include globule size, refractive index, drug release 24th hour, viscosity, gel strength and spreadability. Data were analysed using factorial design to obtain analysis of variance (ANOVA) and regression coefficients. Optical microscope was employed to study the morphology of the prepared formulations. FTIR studies were performed to assess the interaction between the excipients used and the drug due to its nature. HPLC analysis was demonstrated to confirm the identity of a drug and provide quantitative results.