Liposomes were prepared by thin film hydration method. Ten formulations of liposomes was prepared using soya lecithin, cholesterol and drug in ratios (50:50:20, 60: 40:20, 70:30; 20, 80; 20:20 and 90:10:20) respectively.The liposomes was characterized for their size, shape, encapsulation efficiency, drug content and in-vitro drug release studies. The in-vitro drug release study was done for F1 and F6 since these formulations have smaller particle size so the penetrations of drug might be increased. The formulation F1 and F6 suspension was incorporated into the gel and in-vitro drug release study was done. For this study topical liposomal gel containing 1% drugs was prepared according to the procedure and compared with the marketed non liposomal gel containing 1% clindamycin. It was found that non liposomal gel shows higher release than liposomal gel which confirmed that encapsulation of drug into liposomes, resulted in a prolonged drug release rate. Clindamycin found to be more superior against Micrococcus luteus than green tea.