Purpose of review <p>Leishmaniasis, a neglected tropical disease caused by the protozoan parasite <i>Leishmania</i>, remains a significant global health concern, particularly in endemic regions. Developing liposomal formulations for anti-leishmanial drugs has emerged as a promising strategy to enhance treatment efficacy, improve drug stability, and minimize systemic toxicity. This review explores the formulation strategies of liposomal anti-leishmanial drugs, their advantages over conventional therapies, and the challenges associated with their implementation in clinical practice.</p> Recent findings <p>Liposomal formulations offer a flexible drug delivery platform, enabling the encapsulation of a wide range of anti-leishmanial compounds. Preclinical and clinical studies have demonstrated the efficacy and safety of liposomal drugs, with notable successes such as liposomal amphotericin B and sodium stibogluconate. These formulations enhance drug bioavailability, enable targeted intracellular parasite elimination, and reduce adverse effects. However, challenges such as high manufacturing costs, scalability, and accessibility in resource-limited settings remain. Emerging advancements, including stimuli-responsive liposomes, personalized formulations, combination therapies, and liposomal vaccines, promise to overcome these barriers.</p> Summary <p>Liposomal anti-leishmanial therapies present a transformative approach to combating <i>leishmaniasis</i> by improving treatment outcomes and patient adherence while reducing toxicity. Despite existing challenges, continued research and global collaboration are essential to making these therapies more accessible and cost-effective. Integrating innovative drug delivery technologies with healthcare infrastructure improvements can significantly reduce the disease burden and contribute to the eventual eradication of <i>leishmaniasis</i>.</p>