Liposomes are potent drug delivery systems that protect the drug from degradation, improve its pharmacokinetic properties, and deliver a high drug payload. Although several liposomal formulations of chemotherapeutic drugs have been approved for cancer therapy, drug delivery by these liposomes is accomplished mainly by passive means, for example, by enhanced permeability and retention. Antibodies that generate target cell-specific immunoliposomes for improved and targeted drug delivery have been extensively tested. In the past five to ten years, tremendous progress has been made to improve the efficacy of both liposomes and of antibodies. With one immunoliposomal formulation currently being manufactured in a GMP-compliant process for preclinical studies, it is envisaged that various other immunoliposomes will follow.