Microemulsion is an isotropic mixture of oil, surfactant, cosurfactant and drug that can solubilize both water-soluble and oil-soluble drugs. Upon dilution, microemulsions spontaneously form droplets less than 100 nm in size. Pseudo-ternary phase diagrams can be used to optimize microemulsion formulations for drug delivery and increase oral bioavailability. Key properties of microemulsions include thermodynamic stability and the ability to solubilize compounds due to their low interfacial tension.