Liposomal systems are suitable for cosmetotextile applications because this system shows topical effect on the skin. Allantoin is a skin active ingredient that has moisturizing and re-epithelization effect. In this work, allantoin loaded liposome formulations were prepared by using the thin film hydration method for textile application. The characterization of liposome formulation was performed by z-average mean polydispersity index, pH, encapsulation efficiency and electrical conductivity. In vitro release of the liposome was performed by dialysis bag method. Selected liposome formulations were applied on polyamide and cotton fabrics by padding and exhaustion methods. Treated fabrics were characterized by release of allantoin from treated fabric, amount of allantoin, determination of formulation loading capacity of fabrics, SEM images and washing durability of liposomes on the fabric surface. Results confirmed a textile product with allantoin loaded liposome could be a good alternative for moisturizing the skin.