An official inquiry into assisted death for terminally ill people would "open a Pandora's box" delegates at their annual conference in Aberdeen were told.
Former Scottish Chief Executive and prospective candidate in Edinburgh Central, Andy Myles, said voluntary euthanasia was an important issue but not one a political party should have a policy on.
"It is a matter for individual consciences," he said.
"The potential for this issue to divide us is great. Opening up this issue would be like opening Pandora's box."
Ross Finnie, who heads the party's West of Scotland regional list for the new Scottish Parliament, agreed that Lib Dem MSPs should be able to vote freely on the issue without party commitment.
Backing for abuse body
A powerful body to protect children from abuse did receive backing from delegates.
The motion followed last week's report of an official inquiry into abuse at Edinburgh children's homes dating back to the 1970s.
The Child Welfare Commission would promote and protect the interests of children across Scotland.
They also agreed top push for a Social Work Council to regulate the social work profession.
Edinburgh councillor Paul Edie said: "We must act as a nation to ensure the highest standards of care for our children and that they all enjoy a safe childhood."
'Partnership government'
Closing the conference former leader Lord Steel said the Lib Dems were ready for "partnership government" in the Scottish Parliament.
He said: "We are not going to be put under pressure to enter any coalition but of course a partnership government may be possible. It may be the solution."
Lord Steel, who is top of the party's regional list for Lothians in the Scottish elections, said he was tired of reports that Scottish party leader Jim Wallace would be kingmaker at Holyrood.
"There is not going to be a king," he said.
"We are all minorities now. No one is going to have absolute power."
The party has agreed an official stance of negotiating first with the party holding the largest number of seats.
The high profile speech signalled a return to the political front line for Lord Steel.
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