Abstract: This invention relates to a cream containing interferon encapsulated with liposome, which comprises IFN liposome and cream substrate. The advantage of the cream of the present invention is high efficiency of encapsulation, stable production technique, good homogeneity of products, stable efficacy and low rate of leakage. In order to improve the capability of encapsulation of liposome and the activity and efficacy of IFN, IFN liposome and substrate are utilized to prepare a form of cream which cures those skin disease infected by virus, such as herpes zoster, herpetic stomatitis, verruca, condyloma acuminata, mollusoum contagiosum, herpes genitalis, verrca planae, verruca vulgaris, genital ulcer, oral ulcer and pruritus.