Liposome are the most widely used and the most extensively marketed nano-formulation that is being manufactured by pharmaceutical industries. Liposome can be modified in different size and structure. Conjugation of ligend with liposome surface increase the target specificity and changes the pharmacokinetic distribution of encapsulated drug. Different methods of preparation can produce different types of liposomes. Many marketed formulations are available as liposome and has proved to be more useful than the conventional formulations. Antibiotics of different classes such as quinolones, aminoglycosides, beta-lactams, cephalosporins, retroviral, macrolides and polypeptides are associated with the shortcomings of drug toxicities, lower bioavailability as well as bacterial resistance. A proper drug delivery system can circumvent these drawbacks. The liposome can prove to be a big stride towards abolishment of these drawbacks. The disadvantage associated with this novel delivery system should also be understood and prevented by means of proper scientific methods for a betterment of human health and society.