The article reviews the advancements and challenges in liposome-assisted drug delivery. Liposomes have significantly impacted biomedical areas by stabilizing therapeutic compounds, enhancing cellular and tissue uptake, and improving biodistribution. They offer advantages such as biocompatibility, self-assembly, and the ability to carry large drug payloads. However, clinical translation has been incremental due to biological challenges, including immune responses, clearance by the reticuloendothelial system (RES), and complement activation-related pseudoallergy (CARPA). The article discusses various types of liposomal delivery systems, such as conventional, sterically-stabilized, and ligand-targeted liposomes, and their modifications to improve efficacy and reduce toxicity. Despite progress, clinical translation remains hindered by manufacturing, regulatory, and intellectual property issues. The authors emphasize the need for collaboration among experts to overcome these challenges and advance liposomal technology.The article reviews the advancements and challenges in liposome-assisted drug delivery. Liposomes have significantly impacted biomedical areas by stabilizing therapeutic compounds, enhancing cellular and tissue uptake, and improving biodistribution. They offer advantages such as biocompatibility, self-assembly, and the ability to carry large drug payloads. However, clinical translation has been incremental due to biological challenges, including immune responses, clearance by the reticuloendothelial system (RES), and complement activation-related pseudoallergy (CARPA). The article discusses various types of liposomal delivery systems, such as conventional, sterically-stabilized, and ligand-targeted liposomes, and their modifications to improve efficacy and reduce toxicity. Despite progress, clinical translation remains hindered by manufacturing, regulatory, and intellectual property issues. The authors emphasize the need for collaboration among experts to overcome these challenges and advance liposomal technology.