Due to the immense pharmacological significance, the interaction of small molecules with liposome and the exact knowledge of their binding location and distribution within the lipid bilayer of liposome is an active field of biophysical research. Here, we have studied the binding interaction of H33258 with DPPC liposome, a model biological membrane. From the steady‐state fluorescence spectroscopy it was revealed that H33258 bounded to DPPC liposome and the estimated binding constant value was 2.5×102 M−1. It was also revealed that the H33258 essentially partitioned within the lipid bilayer of DPPC liposome. Moreover, from steady‐state fluorescence, time‐resolved lifetime, time‐resolved anisotropy and ITC studies it was established that the probe molecules were sequestrated from the lipid bilayer and bounded to a duplex DNA structure. Our results on the binding consequences of H33258 with liposome will aid development of a simple and safe strategy to deliver drugs to the target sites using liposome, endogenously.