‘Liposomes’ distinct structure and adaptability as an encapsulating medicinal agent have made them a popular medication delivery method. Their unique composition and versatility in encasing therapeutic agents have rendered them a widely used mode of pharmaceutical administration. This thorough analysis highlights the relevance of liposomes in pharmaceutical research and development by examining the many approaches used in their production. Liposomes are spherical vesicles composed of lipid bilayers used in targeted delivery, controlled medication release, biocompatibility, thinfilm hydration, reverse-phase evaporation, and other significant technological methods. More recently, microfluidics has been a popular methodology. Furthermore, advancements in surface modification strategies are marked, highlighting their role in enhancing liposomal stability, targeting specific tissues, and prolonging circulation times in vivo. This review provides insights into optimizing drug delivery systems for improved therapeutic outcomes by elucidating the methodologies and advancements in liposome preparation.