Folate receptors are cellular surface markers for numerous solid tumors. DSPE-PEG-folate (1,2-distearoyl-sn-glycero-3-phosphoethanolamine-N-[folate(polyethylene glycol)-5000]) incorporated into liposomes serves as a targeting ligand. Folate targeted drug delivery is useful in diagnosing and treating cancer and inflammatory diseases. Many molecules such as toxins (proteinaceous), immune stimulators and anti-cancer drugs can be delivered to folate receptor.