An essential quality parameter of vegetable oils is their oxidation stability. In addition to determining their suitability for technological applications, it also determines storage stability. In the present study, effect of liposomal development on the oxidative stability of cold-pressed Nigella sativa L. seed oil (NSO) and virgin coconut oil (VCO) was investigated. Both the oils were studied for physiochemical properties and their stability studies were performed. Oils were entrapped in liposomes and evaluated for the stability study. The stability study of both the free oils and the oil entrapped liposomes was performed at 25 degrees C for 30 days. The study findings revealed that the encapsulation of the oils in liposomal formulation retarded oxidative deterioration. Oxidative stability of oils was improved by the encapsulation into liposomes.