Recent advances in nanotechnology and material sciences have promoted the development of nanomedicine. Among the formulations developed, novel lipid-enveloped hybrid nanoparticles have attracted more attention because of their special structure, properties and clinical applicability. The hybrid nanoparticles are composed of a hydrophilic PEG shell, a nano-sized polymeric or inorganic core and a lipid mono- or bi-layer between the core and PEG shell. This kind of nanoparticle possesses both the characteristics of liposomes and nanoparticles which endows it with many advantages like long circulation, high drug loading efficiency, high stability and biocompatibility, controlled release properties, and drug cocktail delivery. This review describes the recent developments of lipid-enveloped hybrid nanoparticles in cancer treatment, including the fabrication methods, formulations and applications of these hybrid nanoparticles. We expect that the continuing development of lipid-based nanomedicine will greatly improve cancer treatment.