The effective delivery of therapeutic agents to the brain is hindered by the blood-brain barrier (BBB), a highly selective and impermeable barrier that restricts drug entry. Researchers have explored various strategies, including Trojan horse liposomes, to overcome this challenge. This comprehensive review provides an in-depth overview of current research on Trojan horse liposomes for brain drug delivery, focusing on advantages, limitations, and future prospects. The BBB's physiology and function are explained to highlight its significance as a barrier. Traditional drug delivery limitations pave the way for Trojan horse liposomes as a potential solution. The review explores liposome formulation, composition, and functionalization, elucidating how they exploit endogenous transport systems to cross the BBB. Considerations in liposome design, such as surface modifications and targeting ligands, are discussed. Research findings on Trojan horse liposomes' efficacy in delivering therapeutics across the BBB using in vitro, in vivo, and preclinical models are presented, along with specific examples of drugs and diseases targeted. Advantages, such as enhanced drug delivery and reduced toxicity, are analyzed, while challenges like liposome stability and immunogenicity are addressed. Future prospects, including nanotechnology advancements and personalized medicine, are explored. Existing challenges such as large-scale manufacturing and clinical translation are considered. The conclusion emphasizes Trojan horse liposomes' potential for brain drug delivery and underscores the importance of overcoming BBB limitations through continued research efforts.