We have determined an LD50 of 0.56±0.05 mmol/kg for liposomal Gd(BME‐DTTA) in mice and also shown that liposomal Gd(BME‐DTTA) has no deleterious effects on heart rate, blood pressure, left ventricular force and AV conductance in ferret hearts in vivo at the magnetic resonance imaging (MRI)‐effective dose of 0.05 mmol/kg body weight. In MRI images, a 1H signal intensity enhancement is observed in the following organs in decreasing order of the effect: heart≈spleen>kidney>liver. This enhancement is stable for over 3 h in all organs. The results of 1H MRI and electron micrographs indicate that the lipophilic fatty acyl groups in the ligand BME structure and the particle sizes of liposomal Gd(BME‐DTTA) are two important factors for tissue specificity of liposomal Gd(BME‐DTTA) in the intensity enhancement. In vitro relaxivity of a liposomal Gd(BME‐DTTA) sample, stored at 4°C, remained stable for over 4 months of observation, but a significant decrease in relaxivity was observed in a sample stored at room temperature, most likely reflecting some deterioration in liposome chemistry. © 1997 John Wiley & Sons, Ltd.