Liposomes prepared with biotinylated phospholipids and luminol entrapped were shown to be of 187 nm in size, 59% of which were unilamellar and with 43% luminol trapping efficiency. Liposome prepared from biotinylated phospholipids with a longer hydrophilic PEG2000 spacer, but not with the shorter hydrophobic caproyl one, bound efficiently and specifically with immobilized streptavidin in a microplate assay. The interactions of dinitrophenol and tobramycin with their respective antibodies, and the hybridization of 20-mers oligonucleotides were studied using the liposome as a signal generator. These reactions were shown to be specific with limits of detection of 0.58 µM, 0.96 µM and 18 nM, respectively.