This review discusses the advancements in liposome-hydrogel systems for controlled drug delivery. Liposomes, self-assembled lipid vesicles, have been widely studied for their biodegradability, biocompatibility, and ability to protect encapsulated molecules. Hydrogels, 3D cross-linked polymer networks, are known for their high water absorption and ability to encapsulate drugs in physiological conditions. The integration of liposomes into hydrogels has emerged as a promising strategy to overcome the limitations of both systems, such as instability and rapid degradation. This review highlights the advantages of liposome-hydrogel composites, including improved mechanical stability, controlled drug release, and enhanced therapeutic efficacy. Various types of hydrogels, including peptide-based, biopolymeric, and synthetic polymer hydrogels, have been used to encapsulate liposomes for drug delivery applications. Examples include the use of amyloid hydrogels for sustained delivery of doxorubicin, biopolymeric hydrogels for treating primary ovarian insufficiency, and synthetic polymer hydrogels for vaginal drug delivery. The review also discusses the challenges and future directions in the development of liposome-hydrogel systems, emphasizing the need for further research to optimize their performance and clinical applications.This review discusses the advancements in liposome-hydrogel systems for controlled drug delivery. Liposomes, self-assembled lipid vesicles, have been widely studied for their biodegradability, biocompatibility, and ability to protect encapsulated molecules. Hydrogels, 3D cross-linked polymer networks, are known for their high water absorption and ability to encapsulate drugs in physiological conditions. The integration of liposomes into hydrogels has emerged as a promising strategy to overcome the limitations of both systems, such as instability and rapid degradation. This review highlights the advantages of liposome-hydrogel composites, including improved mechanical stability, controlled drug release, and enhanced therapeutic efficacy. Various types of hydrogels, including peptide-based, biopolymeric, and synthetic polymer hydrogels, have been used to encapsulate liposomes for drug delivery applications. Examples include the use of amyloid hydrogels for sustained delivery of doxorubicin, biopolymeric hydrogels for treating primary ovarian insufficiency, and synthetic polymer hydrogels for vaginal drug delivery. The review also discusses the challenges and future directions in the development of liposome-hydrogel systems, emphasizing the need for further research to optimize their performance and clinical applications.