A liposome-encapsulated formulation of the polyene antifungal antibiotic amphotericin B produced by the bacterium Streptomyces nodosus with antifungal activity. Amphotericin B binds to ergosterol, an essential component of the fungal cell membrane, and alters cell membrane integrity, resulting in leakage of intracellular components and cell rupture. This agent may also induce oxidative damage in fungal cells and has been reported to stimulate host immune cells. Compared to amphotericin B alone, liposomal delivery of amphotericin B allows for a greater drug concentration in target tissues while decreasing systemic side effects.