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Context: In this article we are going to clarify the importance and practical role of liposomes in cosmetics. Evidence Acquisition: In pharmaceutics, we have a vast area for designing different dosage forms in order to deliver the active pharmaceutical ingredient to its site of action. However, in cosmetics, since skin is the first defensive barrier against external factors and prevents many substances from entering the underlying layers or systemic circulation, there are some limitations to deliver the active ingredient to the target site. Results: Therefore, we investigated the role of liposomes in cosmetics, and reviewed references in which the properties and applications of liposomes in cosmetics have been studied. Conclusions: This article explains the constituents of liposomes, how they have been discovered and entered the cosmetic field, as well as their definition. Subsequently, it introduces different types of cosmetic liposomes that can be utilized in various cosmetic formulations depending on their specific properties and finally, the benefits of application of liposomes in cosmetics are taken into consideration. By using liposomes, we are able to overcome some restrictions such as low penetration, solubility, stability, duration of effect and high side effects or costs, and improve some other characteristics.