Liposomes are microscopic lipid-based vesicles that have emerged as a promising vehicle for transporting therapeutic agents with precision and efficiency. From enhanced drug bioavailability to targeted delivery, combining nanomaterials and liposomes offers a transformative approach to therapeutic interventions. Encapsulating nanomaterials with drugs in liposomes holds immense significance as it enhances precision, efficiency, and targeted delivery, revolutionizing therapeutic interventions in medicine. This chapter delves into the unique properties of nanomaterials encapsulated within liposomes, examining their potential to revolutionize medicine. In addition, it highlights key advancements, challenges, and prospects in this dynamic and rapidly evolving field, providing readers with a comprehensive understanding of the revolutionary impact on the future of medicinal drugs.