In the present research, it was proposed to provide topical delivery of diclofenac sodium. Diclofenac sodium will be encapsulate in liposome and further loaded into a hydrogel and delivered through topical route. The lipid film hydration approach was used to create diclofenac sodium liposomes, which were then characterised by vesicle size, zeta potential, and entrapment effectiveness. The pH of the generated liposomal gels was within the permissible range of 7.0-7.2. The spreadability of the gels was assessed using slip and drag characteristics and was found to be between 10.45 and 12.32 gm.cm/sec. F1, F2, and F3 spreadabilities were determined to be 10.45±0.075,12.32±0.042 and 11.75±0.049 gm.cm/sec, respectively. The viscosities for F1, F2, and F3 were determined to be 1870±25 cps, 1895±33 cps, and 1875±21 cps, respectively. The percentage of cumulative medication (diclofenac sodium) released from F1, F2, and F3 liposomal gel formulations was 98.15%±17, 98.72%±2.4 and 96.27%±2.7 respectively.