Liposomes have gained significant attention in the food and nutraceutical industries due to their potential for enhancing the bioavailability and stability of bioactive compounds. This chapter explores the digestive behaviour, challenges, and absorption mechanisms of liposomes in these applications. Upon ingestion, liposomes encounter various physiological barriers, including pH variations, enzymatic degradation, and interactions with bile salts, which influence their structural integrity and release kinetics. The absorption of liposomal components primarily occurs through passive diffusion, endocytosis, and interaction with enterocytes in the gastrointestinal tract. Strategies to improve liposomal stability and bioavailability, including surface modification and polymeric coatings, are discussed. Understanding these mechanisms is crucial for optimising liposomal formulations in functional foods and nutraceutical supplements, thereby maximising their health benefits and commercial viability.