Flurbiprofen liposomes were prepared by thin film hydration technique and the phospolipid concentrations were optimized by various trials in the present study liposomes containing Flurbiprofen was prepared. The effect of increase in phospolipid concentration in various parameters like particle size and invitro release profile were studied. The Flurbiprofen liposomes were formulated and evaluated for its drug content, entrapment efficiency, particle size analysis, zeta potential and invitro drug release profile. Based on the results of Flurbiprofen liposomes formulations (FLF 1- FLF 5) formulation FLF4 was selected as the best formulation in which the particle size was 271.1nm and the entrapment was 85.72%. The in vitro % drug release of FLF4 formulation was 99.47± 0.72% at 24 hrs and it was found to be suitable formulation to manage the condition of rheumatoid arthritis. Hence it can be concluded that the newly formulated controlled release liposomal drug delivery systems of Flurbiprofen may be ideal and effective in the management of pain due to arthritis by allowing the drug to release continuously for 24 hrs.