An emulsion is a liquid preparation that consists of fine droplets of an oil dispersed in water. It is commonly used in various industries such as food, cosmetics, and pharmaceuticals. Emulsions are created by combining two immiscible substances, in this case, oil and water, with the help of an emulsifying agent. This agent helps to stabilize the mixture and prevent the oil droplets from separating from the water. Emulsions have a milky or creamy appearance and can be used for various purposes, such as moisturizers, salad dressings, and medical formulations.