Lipospheres are lipid–based water dispersible solid particles of particle size between 0.01 and 100 µm in diameter composed of a solid hydrophobic lipid core (triglycerides), stabilized by a layer of Phospholipid molecules embedded in their surface. Lipospheres delivery system is a suitable carrier system for the delivery of both hydrophobic and hydrophilic drugs. Much of research is now focused on using lipids as novel carriers for drug moieties. Lipid based drug delivery systems like solid lipid nanoparticles, lipospheres (LS) are being developed as substitutes for “polymer based delivery systems” due to the increasing toxicity related concerns of monomers after intracellular processing of polymers and attractive benefits offered by lipids as carriers. Lipospheres are new type of drug delivery system developed mainly for parenteral system. As most of the recent drugs discovered (nearly 40–45 %) are lipophilic in nature having poor water solubility and less bioavailability. This article explains about formulation of lipospheres, factors influencing the quality attribute of lipospheres, mechanisms behind drug loading, evaluation of lipospheres and challenges in the development of lipospheres are discussed in detail.