This review discusses the integration of liposomes and hydrogels for controlled drug delivery applications. Liposomes, self-assembled lipid vesicles, offer advantages such as biodegradability, biocompatibility, and controlled drug release. Hydrogels, 3D cross-linked polymer networks, can encapsulate drugs and provide sustained release. Combining these two systems can enhance drug delivery efficiency by leveraging the strengths of both. The review highlights various liposome–hydrogel systems, including those based on peptide, biopolymeric, and synthetic polymeric hydrogels, for drug delivery applications. Examples include liposomes encapsulated in amyloid hydrogels for sustained delivery of doxorubicin, liposomes in CS hydrogels for transdermal delivery of Liu Zi Tang, and liposomes in alginate hydrogels for treating atopic dermatitis. The review also discusses the preparation methods of liposomes and hydrogels, including conventional and innovative techniques, and the challenges in scaling up these systems for industrial applications. The integration of liposomes and hydrogels has shown promise in various therapeutic areas, including cancer, infections, and wound healing. However, challenges such as low drug loading capacity and stability in liquid media remain to be addressed. The review concludes that liposome–hydrogel composites represent a promising approach for developing efficient and sustainable drug delivery systems.This review discusses the integration of liposomes and hydrogels for controlled drug delivery applications. Liposomes, self-assembled lipid vesicles, offer advantages such as biodegradability, biocompatibility, and controlled drug release. Hydrogels, 3D cross-linked polymer networks, can encapsulate drugs and provide sustained release. Combining these two systems can enhance drug delivery efficiency by leveraging the strengths of both. The review highlights various liposome–hydrogel systems, including those based on peptide, biopolymeric, and synthetic polymeric hydrogels, for drug delivery applications. Examples include liposomes encapsulated in amyloid hydrogels for sustained delivery of doxorubicin, liposomes in CS hydrogels for transdermal delivery of Liu Zi Tang, and liposomes in alginate hydrogels for treating atopic dermatitis. The review also discusses the preparation methods of liposomes and hydrogels, including conventional and innovative techniques, and the challenges in scaling up these systems for industrial applications. The integration of liposomes and hydrogels has shown promise in various therapeutic areas, including cancer, infections, and wound healing. However, challenges such as low drug loading capacity and stability in liquid media remain to be addressed. The review concludes that liposome–hydrogel composites represent a promising approach for developing efficient and sustainable drug delivery systems.