The present disclosure relates to a composition and application in baby lotion thereof. The composition consists of allantoin, grapefruit seed extract and garlic extract the composition of the present invention effectively moisturizes the skin and reduces redness of skin allergy. Besides, the composition is prepared into liposomes to increase the absorption of actives through unique liposome encapsulation technology, so that the amount of active added is reduced, and the side effects of the product is reduced.