The present study aimed to formulate and evaluate a doxorubicin-loaded liposomal drug delivery system to enhance therapeutic efficacy and minimize systemic toxicity. Doxorubicin, a potent chemotherapeutic agent, is widely used in the treatment of various cancers; however, its clinical utility is limited by dose- dependent cardio toxicity and poor tumor selectivity. To overcome these drawbacks, liposomal encapsulation was explored as an advanced nanocarrier system to achieve targeted and sustained drug delivery. Preformulation studies were carried out to assess the compatibility between the drugandexcipientsusingstandardanalyticaltechniques,confirmingnosignificant interactions. Liposomes were successfully prepared using the thin-film hydration method followed by sonication to achieve nanosized vesicles. The optimized formulation was characterized for particle size, polydispersity index (PDI), zeta potential, surface morphology, encapsulation efficiency, and in-vitro drug release profile. The liposomal vesicles exhibited an average particle size of 125–160 nm, low PDI indicating uniformity, high encapsulation efficiency (78–88%), spherical morphology under microscopic observation, and a favorable zeta potential greater than –25 mV, signifying good stability. In-vitro drug release studies displayed a biphasic pattern characterized by an initial burst release followed by a sustained release phase, influenced by lipid composition. Stability studies confirmed that the liposomal formulation remained stable at 4°C for 15 days, indicating suitable storage conditions. Overall, the study demonstrates that liposomal encapsulation of doxorubicin can significantly enhance its therapeutic index by prolonging circulation time, improving tumor targeting through the Enhanced Permeability and Retention (EPR) effect, and reducing systemic toxicity. These results provide a strong foundation for further in-vivo studies and potential clinical translation.