Using a multi-disciplinary approach, this study deals with liposome dermatics from the chemist’s, pharmacist’s, biologist’s as well as clinician’s point of view. It features material on the production of liposomes; appropriate raw materials; encapsulation of active ingredients and their possible incorporation into vehicles such as gels; assessment of stability; the fate of liposomes and active ingredients exposed to animal and human skin both in vitro and in vivo; and the activity of topical liposome preparations in normal and inflamed skin in animal and man as well as their efficacy in skin diseases in man.