The aim of this study was to investigate the effect of charge carrier lipid on the skin penetration, retention, and hair growth of topically applied fi nasteride-containing liposomes. Finasteride-containing liposomes were prepared by traditional thin fi lm hydration method using Phospholipon ® 85 G and cholesterol with or without charge carrier lipid (1,2 dimyristoyl-sn-glycero-3-phosphate or 1,2-dioleoyl-trimethylammonium-propane for anionic and cationic charge, respectively). Freshly prepared fi nasteride-containing liposome suspension was applied on the hairless mouse skin, and skin penetration and retention were measured using KesharyChien diffusion cell. Non-liposomal formulation (ethanol 10% solution containing 0.5 mg/ml of FNS) was also used as a control. The amount of fi nasteride in the diffusion cell and mouse skin was measured by HPLC. The hair growth was evaluated using depilated male C57BL/6N mice. Mean particle size of all fi nasteride-containing liposomes was less than a micron, and polydispersity index revealed size homogeneity. Skin penetration and retention studies showed that signifi cantly less amount of fi nasteride was penetrated when applied as anionic liposome while more amount of the drug was retained. Specifi cally, in liposome prepared with 10% anionic charge carrier lipid, penetration was 12.99 μg/cm 2 while retention was 79.23 μg/cm 2 after 24 h of application. In hair growth study, fi nasteride-containing anionic liposomes showed moderate effi cacy, but the effi cacy was not found when applied as cationic liposomes. In conclusion, topical application of fi nasteride using anionic liposome formulation appears to be useful option for the treatment of androgenetic alopecia to avoid systemic side effects of the drug. Abstract cifi c inhibitor towards type II 5α-reductase, an intracellular enzyme that converts testosterone into 5α-dihydrotestosterone which is believed to cause androgenetic alopecia. There are two distinct isozymes of the enzyme, i.e., type I and type II. In humans, type I 5α-reductase is predominantly expressed in the sebaceous glands of most regions of skin. In contrast, type II 5α-reductase is predominantly found in hair follicles where hair growth begins as well as prostate, seminal vesicles, and epididymis. Therefore, FNS is widely used for the treatment of androgenetic alopecia and benign prostate hyperplasia.Although FNS is effective in the treatment of androgenetic alopecia, oral use of this drug is largely limited due to various side effects such as erectile dysfunction and impotence. Another serious adverse effect includes gynecomastia, develop-