This comprehensive review explores the diverse applications of lipids in the formulation of advanced drug delivery systems, specifically focusing on liposomes, phytosomes, and ethosomes. Lipids, crucial components in these formulations, play a pivotal role in enhancing drug solubility, stability, and bioavailability. The review systematically examines the latest advancements in lipid-based delivery systems, shedding light on their unique characteristics and applications. In the realm of liposomes, the study delves into various lipid compositions, highlighting their influence on liposomal structure and function. Additionally, the review explores the integration of phytosomes, which involve the complexation of drugs with plant-derived phospholipids, showcasing their potential to improve therapeutic efficacy. Ethosomes, lipid vesicles containing high concentrations of ethanol, are also extensively discussed, emphasizing their ability to enhance transdermal drug delivery. Critical analyses of recent research findings, including the impact of lipid selection on vesicle stability, drug release kinetics, and pharmacokinetics, are presented. The review further examines the challenges associated with lipid-based formulations, providing insights into potential avenues for future research and development. By synthesizing current knowledge, this review serves as a valuable resource for researchers, clinicians, and pharmaceutical scientists seeking a comprehensive understanding of the role of lipids in optimizing liposomal, phytosomal, and ethosomal drug delivery systems.