In the present research the development of liposomes by studying various processes as well as formulation related factors such as effect of cholesterol, effect of alkyl chain length of lipids which may affect the size, shape and encapsulation efficiency of liposomes was reported. Cholesterol and phospholipids were studied by Fourier transform infrared (FTIR) spectroscopy. From scanning electron micrographs, the liposomes appeared in various figures, the sizes of prepared liposomal particles varied in the range of 0.147-0.412 um (147- 412) nm and most of them were multilamellar structures. The vesicle size was found to be varied from 0.147 to 0.412 um. The liposomes were photographed using scanning electron microscope. Vesicles were found to be spherical in shape. Analysis of vesicle size was carried out of each formulation code and the size was found to be reproducible. FT-IR is very useful tool for detecting chemical changes, chemical structures and the thermodynamic of phase transitions and conformational changes in biological systems. Frequency shifts in different regions (symmetric, anti-symmetric stretching or bending, scissoring) or changes in the widths of the corresponding peaks can be used to extract information about various physicochemical processes taking place preparation. This research review the development of liposomes, and speculates optimistically about some future applications.