Due to their great biocompatibility, biodegradability, andminimal immunogenicity, liposomes are now the most widelyemployed nanocarriers for a variety of hydrophobic and hydrophiliccompounds that may be biologically active. Additionally, liposomesdemonstrated improved drug solubility and regulated distribution.They also showed the ability to modify the surface of drugs fortargeted, extended, and sustained release. Liposomes can be thoughtof as having developed from traditional, long-circulating, targeted,and immunological liposomes to stimuli-responsive and activelytargeted liposomes based on their composition. More liposomes haveadvanced stages in clinical trials, and many liposomal-based drugdelivery systems are currently clinically licensed totreat severaldisorders, including cancer, fungal infections, and viral infections.This review discusses the composition, preparationprocedures, andclinical uses of liposomes.