*Arvind G, Sumit Shah, Shanmukha Mule, Prashanth P, Noveen Konda Amphotericin B is a polyene antifungal drug used intravenously for systemic fungal infections. Simple solution of amphotericin B is having many side effects while liposomal amphotericin B preparations exhibit fewer side-effects having similar efficacy. Various preparations of liposomal amphotericin B have recently been introduced and all of these are more expensive than plain amphotericin B. Fungisome and Abelcet are liposomal complex formulation of amphotericin B and being the latest and cheapest addition to the lipid formulations of amphotericin B. AmBisome is a liposomal formulation of amphotericin B for injection which is having less side effects as compared to all other formulations of Amphotericin B. Liposomal formulation of amphotericin B for injection, prepared by thin film hydration technique was selected in the present study. Different formulations variables (solvents ratio and pH of complex formation) and process variable (numbers of homogenization cycles) were carried out to control the impurities levels and particle size of liposomes. Formulation prepared at pH 3.0 with 1:2 solvent ratio (Methanol: Chloroform) was given least impurities. Formulation prepared at 1400 bar pressure with 15 homogenization cycles was shown desire particle size.  The optimized formulation was exhibited more than 90% release of drug for a period of 7 days. The stability study (40±2°C/ 75±5% RH) of the Amphotericin B liposomes was evaluated for 3 months and it was found to be stable.<br /><br /> International Journal Of Pharmacy 2249-1848 226 2013-07-01 3 540-547 Copyright (c) Pharma Scholars. All rights reserved 2013