Biocompatible and biodegradable liposome nanomedicine are finding large-scale application in delivery of drugs, RNA, antisense oligonucleotides, DNA, plasmids carrying gene, antioxidants to targeted sites for diagnosis, and treatment at cellular and molecular level of disease both in human and livestock.Conventional drug delivery system suffers from the disadvantage of narrow therapeutic index, poor serum solubility, and nonspecific target effects. Circumventing this problem, liposome drug nanoparticles are designed with the advantage of enhanced permeability, retention effect, selective targeted delivery, stimuli-induced release that can evade the host defense system, cross the bloodbrain barrier, thus conferring, synergetic effects, small interfering RNA (siRNA) co-delivery, multimodality therapies, and oral delivery of therapeutics at disease sites. Liposomes with diverse range of modifications are being designed to generate improvised medicine delivery systems. Immuno-liposomes, linked with antibodies are promising tools for targeted drug delivery to specific cancer cells. In the recent times several anti-cancer agents in nanodelivery systems are under preclinical and clinical studies. Lipid-based liposomal delivery systems of self-amplifying RNA vaccines are showing promising effects.Globally research is being carried out in generating liposomes with higher compatibility within the biological system in targeting a wide array of diseases including cancer, overcoming multidrug resistance, inflammatory diseases, thrombosis, psoriasis, muscular dystrophy, spinal cord injury, neurologic diseases, diabetes, parasite induced diseases, and cardiovascular diseases.