The highly antioxidant methanol extract of stem-bark of Schumacheria castaneifolia was studied for the effect of variation of the cholesterol content on the properties of liposomes. Liposomal formulations displayed colloidal dimensions and negative zeta-potentials; and the stability varied with the lipid composition. The liposomes consisting of 9:1 and 8:2 ratio of egg yolk phosphatidylcholine to cholesterol were optimal for the highest encapsulation efficiency (86%) and loading capacity (8%) of the plant extract. The release properties of plant extract encapsulated liposomes depended on the lipid composition. Liposomal plant extract exhibited slow release over 7 h with slower release in artificial sweat than in phosphate buffered saline or deionized water. Interactions between phospholipids and cholesterol, and polyphenols of the plant extract and phospholipids appear to affect the properties of liposomes.