Vincristine sulfate (VIN) is commonly employed as a cytotoxic agent in the treatment of hematological malignancies, particularly acute lymphoblastic leukaemia (ALL). However, its maximum therapeutic benefits have been hindered due to the dose-dependent neurotoxic effects it can induce, which traditionally manifest as autonomic and peripheral sensory-motor neuropathy. The innovative approach aimed to address VIN's neurotoxic limitations while preserving its therapeutic efficacy in combating hematological malignancies, including ALL. The liposomes were prepared using the reverse-phase evaporation method. This method involved the encapsulation of VIN within liposomes through a controlled evaporation process. Secondly, PEGylated liposomes were synthesized through PEGylation. The liposomes were examined using scanning electron spectroscopy, revealing a smooth and spherical surface morphology. The particle size of the liposomes ranged from 90±0.5 to 120±0.4 nm. The encapsulation efficiency of the liposomes was found to be 77.24% and the highest drug release reached 95% over 50 hours. Cytotoxicity studies demonstrated that the liposomal formulation exhibited a non-toxic nature. Furthermore, in an in-vivo cellular uptake study, the PEGylated liposomes showed efficient accumulation within tumor cells. The liposomal formulation demonstrated superior effectiveness in treating ALL compared to the pure form of the drug.