Topically applied drugs need to overcome physiological, anatomical and dynamic barriers in the ocular milieu for effective ocular penetration. There exists an urgency to develop novel approaches for the treatment of ophthalmic complications such as glaucoma, uveitis, retinitis, age related macular degeneration, diabetic retinopathy, retinitis pigmentosa. Efflux protein pumps present in the ocular tissues restrict the ocular absorption. Novel drug delivery strategies and approaches could improve ocular bioavailability of drugs which would be beneficial for the intervention of disorders. At present, the intravitreal route is widely used for posterior ophthalmic delivery. Over the past few years, liposomal systems were being exploited and targeted for posterior ocular delivery due to their unique structural framework to entrap lipophilic/hydrophilic drugs. The present review discusses about the recent advances the niche of liposomal ocular delivery.