Gene therapy of human disease is a method of treatment under active development. DNA-loaded liposomes exhibit great promise for use in this field. Liposome-based transfection vectors have many inherent advantages that will likely lead to their wide in vivo use. Vectors with low toxicity and a high degree of targetability can now be easily prepared. These vectors are also free of the length constraints governing retroviral vectors. In this review we discuss recent developments in the use of liposomes for transfection of eukaryotic cells.