This study explores the development of a hydrogel formulation for the effective topical delivery of hydroquinone (HQ) for the treatment of hyperpigmentation. Hydroquinone, a widely used skin-lightening agent, works by inhibiting tyrosinase, thus reducing melanin production. However, conventional topical formulations such as creams and gels face challenges, including stability issues, stickiness, and uncontrolled drug release. To overcome these limitations, hydrogels, particularly liposomal hydrogels, are being investigated. Liposomes enhance the local retention of drugs, ensuring sustained release and reducing systemic absorption. In this formulation, hydrogels provide a moisture barrier, promoting wound healing and reducing bacterial contamination. The controlled release of HQ from liposomal hydrogels offers potential advantages over traditional delivery systems, including increased skin concentration and prolonged therapeutic action. The study focuses on evaluating the stability of HQ in hydrogel dispersion, aiming to improve its efficacy in treating conditions such as melasma, freckles, and post-inflammatory hyperpigmentation. By using appropriate liposomal formulations and optimizing the hydrogel matrix, this approach offers a promising strategy for targeted, controlled, and effective treatment of hyperpigmentation with reduced side effects.