An emulsion is a dispersion of liquid globules in a non-miscible medium, and requires an emulsifying agent to maintain stability. There are two main types of emulsions: oil in water (o/w) and water in oil (w/o), differentiated through miscibility, staining, and conductivity tests. Emulsions serve important pharmaceutical and therapeutic purposes, enhancing drug administration and absorption while requiring careful formulation to ensure stability and prevent separation.