An emulsion is a colloidal system in which one liquid is dispersed in another liquid immiscible with it.
There are two types of emulsions
(1) Emulsion of oil in water
An oil is disperse phase and water is dispersion medium. For example, milk consists of particles of liquid fat dispersed in water.
(2) Emulsion of water in oil
Water is disperse phase and an oil is dispersion medium. For example, cod-liver oil, containing particles of water dispersed in oil.