Transmission electron microscopy (TEM), particle size, polydispersity, zeta potential, differential scanning calorimetry (DSC), and Fourier transform infrared (FTIR) spectroscopy were used to physically characterize the interactions of curcumin or gallic acid with liposomes as model membranes. All liposomes showed distributions for contained and empty vesicles that were less consolidated, roughly spherical in shape, and dispersed. The values of the zeta potential tend to rise when gallic acid is incorporated into liposomal membranes. The primary peak temperature of empty liposomes moved to a greater level when curcumin was added. which indicates a conformational order within the phospholipids. The primary distinguishing endothermic peak of pure liposomes was reduced by gallic acid. FTIR study confirmed the interaction of curcumin or gallic acid with the liposome's moieties. At the highest liposomal curcumin or gallic acid concentration (1500 µg/ml), about 7% of cell viability was seen in MCF-7-treated cells. while for free curcumin or gallic acid treated cells the cell viability was approximately the same 22 %. HEPG-2 treated cells demonstrated cell viability at the maximum Curcumin concentration or its liposomal form (1500 µg/ml) of about 17% and 13%, respectively 72 hours after incubation. This study showed that the cytotoxicity effect of curcumin is more than that of gallic acid. The information gathered enables the formulation of a potential anticancer regimen that would administer free curcumin or its liposomal form to improve the efficacy of liver or breast cancer treatments.