Infections caused by organisms of the genus mycobacteria, such as tuberculosis M. avium disseminated infection in AIDS patients and leprosy, are extremely common around the world. Mycobacteria are intracellular organisms that invade and multiply chiefly within phagocytic cells. Antibiotic resistance among mycobacteria is a growing concern. M. tuberculosis resistant to INH and rifampin are increasing in major urban centers of the developed and in the developing world. M. avium is characteristically resistant to most anti-tuberculosis antibiotics. Furthermore, therapy of mycobacterial infections takes a long time and most of the drugs have potential side effects and toxicity. In addition, mycobacteria is found within cells and antimicrobials need to be able to achieve adequate concentration within the compartment where mycobacteria is located. Liposome preparations, containing antibiotics, have a theoretical advantage in being able to deliver high concentrations of antimicrobials into the infected cell. Studies done thus far, in vitro and in vivo, have confirmed this premise, when comparing drug entrapped in liposomes with free drug. This paper summarizes the results obtained using liposome preparations to treat mycobacterial infections.