The use of carrier systems for the delivery of drugs to areas in the body in need of pharmacological intervention is now the subject of intense research in many laboratories. Because of its obvious advantages (e.g. protection of drugs from hostile environments, facilitated target penetration and avoidance of side effects), drug delivery is expected to ease the pressure and expense of new drug development by making better use of drugs in existence. Generally, carrier-mediated delivery has been envisaged either as direct transport of drugs to a biological target by a carrier that will associate with it selectively, or as release of drugs from a carrier circulating in the blood or immobilized in tissues, at rates compatible with optimal action. One system that has attracted considerable attention is the use of liposomes as carriers of pharmacologically active agents. 154 references were reviewed with special emphasis on the targeting of drugs by use of liposomes in this respect. Recent advances in the other carrier systems and in methods for the preparation of liposomes were also reviewed briefly.