An emulsion is a mixture of two immiscible liquids, where one liquid is dispersed as globules in the other. There are two types: oil-in-water (O/W) and water-in-oil (W/O). Emulsions have advantages like masking unpleasant tastes and sustained drug release, but are thermodynamically unstable with a short shelf life. Emulsions contain a dispersed internal phase and a continuous external phase, and emulsifying agents are used to stabilize the emulsion by reducing interfacial tension at the boundary between the two liquids.