One of the most recent advancements in the domain of solubility enhancement lead to the development of pharmacosomes, a novel lipid based drug delivery system. These are the colloidal dispersions of drugs covalently bound to the phospholipids. They may exist as ultrafine vesicular, micellar or hexagonal aggregates depending upon the chemical structure of the drug-lipid complex. Their very small size and unique properties such as amphiphilicity, active loading of drugs, high and predetermined entrapment efficiency, stability make them an appropriate carrier for delivering drugs with precision and selectivity. They help in achieving increased bioavailability, reduce the cost of therapy and provide controlled as well as targeted release of drug. There is reduction in the drug leakage and toxicity while the therapeutic efficacy increases. It is advancing as a method used for delivery of various drugs like non-steroidal anti-inflammatory drugs, cardiovascular drugs, antineoplastic drugs and proteins. This approach as a drug delivery system certainly promises a reliable, safe, selective and precise method of drug delivery.