A liposomal formulation for targeting immunotherapy, with synergistic effect in the case of encapsulating an immunosuppressive drug, such as Cyclosporine A, and the method of preparing the same. The reduced toxicity and significant reduction of Delayed-Type Hypersensitivity DTH) due to extremely reduced dosage, potential therapeutic value in control of chronic transplant rejection, allergies and certain autoimmune diseases, and increased efficacy are some of numerous and significant benefits of the present invention.