The purpose of this study was to prepare and characterize levocetirizine hydrochloride loaded liposome of by film hydration technique followed by sonication. Sorbitol was added to facilitate the hydration of dried liposome into vesicles or to prepare rehydration system. The liposomes were characterized for size, shape, entrapment efficiency, in vitro drug release and stability. The morphology of liposomes was characterized through a phase-contrast microscope and transmission electron microscope. The percent entrapment efficiency and particle size varied between 55.6 ± 0.21 to 81.2 ± 0.52 and 15.73 ± 0.99 to 24.52 ± 0.97 μm, respectively. The drug release increased at higher concentration of phospholipids. On the other hand, the drug release was decreased at higher concentration of cholesterol. The preliminary results of this study suggest that the developed multi-lamellar vesicles containing levocetirizine hydrochloride could enhance drug entrapment efficiency, reduce the initial burst release and modulate the drug release.