About 40% of new compounds have low water solubility, however they are therapeutically active. For such drugs, different methods of formulation development should be proposed. Layer by layer assembly has recently been studied to solve this problem in which lipophilic drugs have been encapsulated. In this layer by layer process, adsorption of different components is done which is facilitated by the electrostatic attraction resulting in the formation of multilayer shells of nanometer size. These drug delivery systems include nano- and micro-particles and emulsions. In this review article, the formulation methodology, advantages, and uses of layer-by-layer assembly approach have been discussed. Keywords: Lipophillic drugs, Layer-by-layer microcapsules, Drug deliver