Mixtures are classified into colloids, suspension and true solution depending on the property of the substances.
Emulsion belongs to the category of colloids.
Colloids are substances where 1-1000 nm sized particles dispersed in the medium
The particles which are dispersed in the medium are called dispersed phase and the medium in which the particles are dispersed is called the dispersion medium.
Depending on the states of the dispersed phase and dispersion medium, different types of colloids are present.
In emulsion, both the dispersed phase and dispersion medium are in liquid states.
Colloids can show Tyndall effect. i.e.., when the light passed through the colloidal solution path of light becomes visible due to the scattering of light by the dispersed particles.
Example: milk (fat globules are dispersed in water which is the dispersion medium).