Abstract: Nature contains a diverse range of phytoconstituents that possess several pharmacological properties. However, the effectiveness of herbal formulations is limited due to the poor bioavailability of phytoconstituents, which makes it difficult for them to pass through the cell membrane. Phytosomes are a modern type of herbal formulation that comprises therapeutically active phytoconstituents extracted from medicinal plants and enclosed by phospholipids. By combining phytoconstituents with phospholipids, phytosomes are able to enhance bioavailability and reduce side effects. Various techniques such as solvent evaporation, rotatory evaporation, anti-solvent precipitation, freeze-drying, and solvent ether injection can be used to prepare phytosomes. Phytosomes can be evaluated using methods such as UV-Spectra, DSC, drug entrapment and loading capacity, surface tension activity measurement, and in-vitro/in-vivo studies. This review discusses different methods for preparing phytosomal formulations and their advantages, which have been found to significantly improve the bioavailability of phytoconstituents. Phytosomes have high entrapment efficiency and do not compromise the safety of nutrients. By utilizing phytosomal drug delivery, issues associated with conventional drug delivery may be overcome. Therefore, it is important to combine Indian Ayurvedic medicine with novel drug delivery systems to improve drug delivery technologies.