This chapter explores the evolving world of drug delivery systems for neurodegenerative disease treatment, with a focus on the innovative use of functionalized phytosomes and liposomes to overcome the challenging blood-brain barrier (BBB). Traditional approaches, including oral and intravenous administration, have offered limited success due to challenges such as poor bioavailability, inability to cross the BBB, and systemic side effects. In contrast, functionalized phytosomes and liposomes present a promising strategy, enhancing drug solubility, stability, and targeted delivery to affected brain regions. The complexities of neurodegenerative diseases and the critical role of the BBB in drug delivery are also discussed. Phytosomes and liposomes are introduced, detailing their development, unique properties, and mechanisms of action. Special attention is given to surface modification techniques and targeting strategies that enable these nanocarriers to cross the BBB and deliver therapeutic agents directly to diseased cells. Through a series of case studies, the application of these advanced drug delivery systems in treating Alzheimer’s disease, Parkinson’s disease, and other neurodegenerative disorders is explored. The chapter also addresses the challenges and future prospectives in the field, including manufacturing scalability, regulatory hurdles, and ethical considerations. Concluding with a call to action, the chapter emphasizes the need for continued research and collaborative efforts to refine these nanocarrier systems, highlighting their potential to revolutionize neurodegenerative disease therapy and improve patient outcomes.