Liposomes are made of lipid bilayer and aqueous phase with the lipid core. A variety of drugs can be wrapped in its aqueous phase and lipid bilayer membrane. So it will be a new type of drugs which could encapsulate other drugs and release these drugs targeting and slowly increasing the local drugs concentration. The liposomes appear targeting property, long circulation, low toxicity, slow releasing, non-immunogenicity and protection potential. The advantage of the new type of drug has interested a lot of medical researchers. And it has become research hot topic at home and abroad, and the speed of research progress and development of liposomes is very quickly. At present, their application has been throughout the life science and membrane engineering, and gradually to the development of clinical applications. On clinical, they are more used as anti -cancer drugs in oral medicine and clinical medicine. In this paper, the latest developments on application of the liposomes in medicine, in particular the application of oral medicine was reviewed.