The principal objective of formulation of lipid-based drugs is to enhance their bioavailability. The use of lipids in drug delivery is no more a new trend now but is still the promising concept. Lipid-based drug delivery systems (LBDDS) are one of the emerging technologies designed to address challenges like the solubility and bioavailability of poorly water-soluble drugs. This paper mainly focuses on novel lipid-based formulations, namely, emulsions, vesicular systems, and lipid particulate systems and their subcategories as well as on their prominent applications in pharmaceutical drug delivery. This chapter aims to illustrate the mechanisms by which lipid-based formulation (LBF) overcome bioavailability limitations and control drug release, rationalize the formulation design, describe methods for characterization and identification of critical quality attributes, and explore their emerging applications including modified release formulations.In this paper we will discuss. Development and Evaluation of lipid-based formulation for improvement of bioavailability.