This study involves an in-vitro experimental approach that was designed to investigate the possible interaction between liposome encapsulated hemoglobin (LEH). Reverse micelle processing was used to produce LEH. The study presented here does not indicate any negative interaction between LEH formed by reverse micelle method and relevant blood cells, namely platelets and red blood cells. Liposomes encapsulated hemoglobin affected rheological properties of blood, and Newtonian behavior is observed as a result of mixing LEH with whole blood (WHB). Neither shear induced nor stagnant hemolyses were significant. Moreover, platelets do not seem to be activated as a result of mixing WHB with LEH.