Liposomes are potential carriers for targeting and controlled drug delivery by the intravenous route. Beta cyclodextrin and Hydroxy propyl beta cyclodextrin inclusion complexes with Itraconazole were prepared by kneading method and these complexes were incorporated in the aqueous phase of the liposomes to prepare Itraconazole liposomes. Factors such as ratio of lipids employed, drug:lipid ratio, etc were fine tuned and optimized to achieve maximum entrapment of the Itraconazole in the aqueous phase. In the present work liposomes are prepared by method called Solvent Injection Method. The prepared liposomes are characterized by optical microscopy, Scanning electron microscopy, particle size determination, encapsulation efficiency and also evaluated by using FTIR spectroscopy and in-vitro diffusion studies by using dialysis membrane. The increase in the solubility of Itraconazole with cyclodextrin complexes in comparision with plain drug is an indubitable advantage of this approach.