A rapid and simple approach using 1 H NMR was developed for determination of liposomal encapsulation efficiency without the need for physical separation of entrapped and non-entrapped marker. Measurements were made using a marker (homocarnosine) with a pH-sensitive 1 H chemical shift in the presence of a pH gradient across the phospholipid vesicle membrane, or by addition of the chemical shift reagent, thulium(III)-1,4,7,10-tetraazacyclododecane-1,4,7,10-tetra-(methylene phosphonic acid sodium salt) (TmDOTP 5 - ). The measured encapsulation efficiencies for the liposomal dispersions prepared from 1,2-dipalmitoyl-sn-glycero-3-phosphocholine (DPPC) through extrusion using 50, 200 and 1000nm polycarbonate membranes were found to be identical using the two different experimental approaches.