The design of targeted oral liposomes is anticipated to improve the systemic delivery of poorly absorbed agents, such as proteins and peptides. A poly(ethylene oxide) (PEO)-folic acid (FA) derivative was prepared and evaluated for improving liposome transport across a model gastrointestinal cell line (Caco-2). FA-PEO-cholesterol (Chol) derivatives were synthesized and adsorbed at liposome surfaces encapsulating Texas Red((R))-Dextran 3000 (TR-dex), a poorly-absorbed, neutral, hydrophilic, large molecular weight (M(w)) marker. Apparent permeabilities (P(app)) of Caco-2 cells to FA-PEO conjugates, TR-dex, uncoated TR-dex liposomes, and FA-coated TR-dex liposomes were compared at 2 h post-administration. Intracellular delivery of TR-dex was detected by fluorescence microscopy. An increase in intracellular accumulation of TR-dex associated with FA-PEO-coated liposomes, but not other formulations, was evidence of the potential of FA-targeted liposomes in the oral delivery of poorly absorbed, large M(w) agents.