Since there is no medicine for combating arsenic induced liver fibrosis, quercetin (QC), a plant origin drug, was used to combat oxidative stress caused by arsenic to hepatic tissues of rat. Concentrations of lipohydroperoxide, superoxide dismutase (SOD) and catalyses were monitored with respect to free QC and liposome intercalated QC. Liposome intercalated drugs increased antioxidant capacity as well as decreased the value of 4-hydroxy proline (4-PC) compared to the arsenite treated group. So, liposome intercalated drug showed more optimized action to liver than free drugs and quercetin is promising to combat arsenic induced hepatomegaly in the arsenic endemic areas.