beta-Sitosteryl-beta-D-glucopyranoside (LC) was synthesized by reacting penta-O-acetyl-beta-D-glucopyranoside with beta-sitosterol, followed by deacetylation with sodium methoxide. Both lyotropic and thermotropic liquid crystal properties were observed under polarized light. Its critical micellar concentration (CMC) was 8.5 x 10(-6) M. The calculated HLB value was 6.24. Ascorbic acid was encapsulated in liposomes constructed with lecithin and cholesterol resulting in encapsulation efficiency (EE) of 44.1% and drug loading (DL) of 78%. The addition of LC to liposomes increased the EE to 63.0% and DL to 82%. Therefore, LC has good co-surfactant properties and could be used as encapsulation enhancer in liposomes.