Liposomes have emerged as one of the most promising and versatile platforms for drug delivery, especially in the field of cancer. These nanoparticles are spherical vesicles composed of lipid bilayers, which exhibit biocompatibility and possess unique dual hydrophilic-hydrophobic properties. Liposomes effectively encapsulate a broad range of therapeutic agents, including both hydrophilic and lipophilic drugs, thereby offering a way to deliver both types of compounds. The primary benefit of liposomes is their ability to improve the safety profile by reducing the systemic toxicity of drugs by limiting their exposure to healthy tissues. Furthermore, liposomes can be designed with “smart” characteristics, allowing for controlled, stimulus-responsive drug release. These stimuli can be either internal (such as changes in pH, the presence of reducing agents, or enzymes) or external (such as light, magnetic fields, or ultrasound). Stimuli-responsive liposome is a precise approach for delivering chemotherapeutic agents at the tumor site in a controlled manner, thus reducing damage to normal tissues and preventing the side effects of the conventional chemotherapy regimen. This chapter looks at recent advances in liposome-based drug delivery methods, particularly in cancer therapy. It discusses several stimulus-responsive alterations, manufacturing procedures, characterization, and a brief literature review on their use in cancer treatment.