Liposomes are biocompatible, biodegradable, controlled delivery systems with the ability to encapsulate both lipophilic and hydrophilic compounds, including metal ions. Liposome encapsulated Ag+ (lipo-Ag+), prepared by reverse-phase evaporation, was used as a controlled delivery system against Candida albicans. Characterisation of the lipo-Ag+ indicated that the multilamellar vesicles with diameters ranging between approximate to 0.5 and 5.0 mu m showed potential as a controlled delivery system to consistently deliver Ag+ to C. albicans. Results from inductively coupled plasma (ICP) analysis showed higher association of cell bound Ag+ at 15 mins post exposure when compared to unencapsulated Ag+. Scanning electron microscopy (SEM) and transmission electron microscopy (TEM) indicate detrimental effects of Ag+ on C. albicans cell structure. These effects along with the ICP results also correlate with previously reported time kill experiment observations.