The results of the conducted studies showed that the hydroglycolic extract of Artocarpus lakoocha (AL) heartwood exhibited the potent antioxidant and tyrosinase inhibitory activities compared with positive references which are commonly used as antioxidant and skin-whitening agents in cosmetic products. Encapsulation of AL heartwood extract into liposomes can provide prolonged release. Based on the in vitro skin permeation study using a synthetic membrane made from two layers of polyethersulfone (PES) on top of a layer of polyolefine as a skin model, the cumulative amount per area of AL heartwood extractencapsulated liposomes was higher than that of nonencapsulated one. In addition, in vivo skin whitening study showed that the lotion containing AL heartwood extract-loaded liposomes exhibited better skin whitening effect on human volunteers than the lotion containing non-encapsulated AL heartwood extract. The obtained results show that liposomes are a promising delivery system for enhancing skin delivery of AL heartwood extract effectively.