Poorly water-soluble drugs are common and challenging in pharmaceutical industry. The poor solubility can reduce the drugs' therapeutic efficiency and bioavailability. Improving the solubility and bioavailability of poorly water-soluble drugs is a challenge and a main issue in the development and application of these drugs in pharmaceutical industry. Liposomes is phospholipid-based vesicular drug delivery system which act as drug carriers for both lipophilic or hydrophilic drugs and have the ability to solubilize the carried drugs. An innovative approach is the incorporation of cyclodextrins (CDs) into the liposomes encapsulating the drug molecules for improving safety and effectiveness of drug molecules by the use of water-soluble CDs properties, which allow the formation of CDs liposomes complexes with lipophilic molecules. CDs liposomes complex increases targeting effect, regulates drug release, improves drug properties and drug encapsulation efficiency. The aim of this review is to summarize the advantages and applications of liposomes incorporating CDs to enhance bioavailability of poorly soluble drugs.