Abstract: A composition and method for treating a wound or surgical incision, by sustained-released delivery of epidermal growth factor (EGF). The composition includes a high-viscosity aqueous dispersion of negatively charged liposomes with liposome-entrapped EGF. The EGF/liposome composition is formed, in one embodiment of the invention, by suspending a lipid mixture typically containing equimolar amounts of neutral and negatively charged phopholipids and cholesterol in a low-conductivity aqueous medium containing EGF and a zwitterionic compound whose isoelectric point is between pH 5.5 and 8.5 to form a gel-like composition. One embodiment of the invention contains EGF entrapped by surface adsorption to the liposomes, for slow release from the composition.