The kinetics of starch hydrolysis in the AMG-liposome microreactor system was characterized experimentally and mathematically. This methodology has the potential to be applied to evaluate other liposomal catalysis operations. In addition to investigating AMG entrapment percentage and entrapment efficiency, enhanced thermostability of liposome-entrapped AMG was demonstrated. As expected, hydrolysis rates are limited by the rate of mass transfer of substrate across the lipid bilayer. Activation of enzymes and altered permeability within the liposomal environment are being investigated further. The application of fluorescence laser confocal microscopy in physical characterization of liposome lamellarity was a useful methodology. Multiple batch hydrolyses of starch with entrapped AMG inside MLV demonstrated that MLV-entrapment was useful for catalysis with enzyme recovery. Such recycle operations reduce the cost of AMG required. These results show the promise of liposomes as enzyme carriers in conversions involving macromolecular reactants. Thus, the information gained from this research should contribute to improving our ability to advance biologically based processes by providing efficient and economical ways of enhancing the activity and stability as well as reusability of biocatalysts for use in bioprocessing applications.