Liposome are the concentric bilayer means core of center in which aqueous volume entirely envelope by the phospholipids bilayer used to transfer enzymes, protein and drugs to targets cancer cell or tissue. These are chemical moieties in which action towards target organ. It was first discovered by 1965 and soon was proposed drug delivery system. There are numerous application like anti fungal, anti cancer, anti inflammatory and anesthetic drugs. The magic bullet concept of Paul Ehrlich through very late, offers a logical solution to the age old problem unrelated and unwanted effect of therapeutic agent and optimizing the drug therapy in its true sense. Drugs would be targeted by virtue of groups having affinity for specific cells, tissues or organs. Liposome having also its modifications or upgraded versions likes enzymosomes, hemosomes, virosomes, and erythrosomes. Liposome has emerged as a dynamic mode for targeted drug delivery. Ligands confer specificity on a non specific reagent. Although controlled and sustained drug delivery can be considered as the magic bullet concept. We can look forward to many more clinical products in the future.