Clinically approved therapeutics associated with cancer are limited to mostly chemotherapy, surgery and radiotherapy in spite of the advancements in the biomedical field. Due to the cardiotoxicity and uncountable side effects brought by the prevailing treatment strategies, demands are growing for targeted drug delivery using nanomaterials. For this the most commonly used drug, doxorubicin (DOX) is encapsulated within several type of nanovesicles to observe their anticancer activity. Among them, DOX encapsulated liposomes gained popularity because of their clinical success and lower toxicity. To enhance their efficiency and site specific delivery, attempts are made to modify the liposomes by combining them with peptides, aptamers, antibodies etc to develop pH, thermal, UV-sensitive and electro-magnetic liposomal nanocarriers for controlled drug release. The novel strategies for the treatment of Breast, Lung, Liver, Pancreatic, Prostate, Ovarian, Cervical, Blood, Brain and Colon cancer using modified liposomes encapsulating DOX are illustrated in this review.