Liposomes, first developed in 1965, have evolved into a widely used nano-drug delivery system. These bilayer phospholipid vesicles have significantly advanced in recent years, enhancing the therapeutic index of various drugs through altered biodistribution profiles. Extensive research is ongoing in diverse areas, including anti-cancer, anti-fungal, anti-inflammatory drugs, and therapeutic genes. Clinically approved liposomal products include Doxil®, Ambisome®, and DepoDur™. This review provides an updated overview of liposomal technologies such as Stealth technology, DepoFoam™, and Thermosensitive liposomes, along with formulations and ongoing clinical trials. Key liposomal products for cancer therapy, fungal infections, photodynamic therapy, pain management, and viral infections are discussed, highlighting their unique characteristics and benefits. The review also covers liposomal formulations in clinical trials, showcasing the ongoing advancements in this field.Liposomes, first developed in 1965, have evolved into a widely used nano-drug delivery system. These bilayer phospholipid vesicles have significantly advanced in recent years, enhancing the therapeutic index of various drugs through altered biodistribution profiles. Extensive research is ongoing in diverse areas, including anti-cancer, anti-fungal, anti-inflammatory drugs, and therapeutic genes. Clinically approved liposomal products include Doxil®, Ambisome®, and DepoDur™. This review provides an updated overview of liposomal technologies such as Stealth technology, DepoFoam™, and Thermosensitive liposomes, along with formulations and ongoing clinical trials. Key liposomal products for cancer therapy, fungal infections, photodynamic therapy, pain management, and viral infections are discussed, highlighting their unique characteristics and benefits. The review also covers liposomal formulations in clinical trials, showcasing the ongoing advancements in this field.