A colloidal system in which one liquid is dispersed in another liquid immiscible with it is called an emulsion.Types of emulsion:(1) Emulsion of oil in waterDisperse phase is oil. Dispersion medium is water.For example, milk consists of liquid fat particles dispersed in water (2) Emulsion of water in oilDisperse phase is water and the dispersion medium is oil.For example, cod liver oil consists of particles of water dispersed in oil.