Abstract: This invention provides an improved procedure for producing large multilamellar lipid vesicles (MLV), which may be used to encapsulate a biologically active material, particularly lipophilic substances. According to this invention, a lipid film is formed on inert, solid contact masses within a vessel, by evaporating an organic solvent therefrom. Subsequent agitation in the presence of an aqueous liquid, followed by a period in which the vessel remains undisturbed yields the multilamellar vesicles. The procedure permits the encapsulation of both hydrophilic and lipophilic materials.