Liposomal drug delivery system of Glimepiride was made by ethanol-injection method. Soybean phospholipids and cholesterol with phosphate buffer saline were used to make liposomal suspension. Different characters of liposomes like drug encapsulation efficiency, turbidity and morphology were studied. Liposomes in size range of 99.5 nm to 320.6 nm were obtained. Encapsulation efficiency was found to from 79.6-97.5%. Turbidity studies showed high concentration surfactant formation. The SEM and TEM images showed liposomes are spherical shape. In-vitro drug release was studied using dynamic dialysis method. Biological studies were studied using albino rats. To determine the comparative leakage, stability studies were done at different temperatures.