The term “phyto” means plant while “some” means cell-like. Phytosome is a novel emerging technique applied to phyto-pharmaceutical which contains phytoconstituents of herbal extract surrounds and bound by lipid. Most of bioactive constituents of phyto-medicine are water soluble compounds like flavonoids. Because of water solubility and lipophilic outer layer, phytosome shows better absorption, hence produces better bioavailability than the conventional herbal extracts. Because of their improved pharmacological and pharmacokinetic properties, phytosome are used to treat acute and chronic liver diseases and therapeutically used as dietary supplements. The current review highlights key findings of recent research work conducted on phytosomes with our own viewpoints which can give the new directions and advancements to herbal dosage forms and the technical aspects of phyto-phospholipid formulations to face the future challenges.