Cancer is the leading cause of death with multiple obstacles in therapeutic arsenals employed to date. Apoptosis induction in cancer cells has hitherto been a prominent unresolved obstacle for a few decades. Liposomes with multiple merits were extensively employed to entrap several types of anticancer agents, biomolecules and imaging agents to achieve substantial therapeutic effect for various types of cancers. Multifunctional liposomes with enhanced biocompatible properties were designed to enhance the therapeutic effect. Despite the promising drug delivery strategies and significantly reduced toxicity of the liposomal formulations a few demerits still limit their success considerably. This chapter reviews recent advances in liposomal formulations, methods of therapeutic loaded liposomal preparation, their merits and demerits. A few challenges associated with liposomal drug delivery and apoptosis induction are also summarized.