The colloidal solution in which both the dispersed phase and the dispersion medium are liquids is known as an emulsion. Emulsions are divided into two categories:

(a) Oil in water type: The dispersion medium is water, and the dispersed phase is oil. For instance, milk, disappearing cream, and so on.

(b) Water in an oil type: In this case, the dispersion medium is oil, and the dispersed phase is water. For instance, cold cream, butter, and so forth.