This chapter focuses on the recent applications in utilizing both the simple and multiple emulsions for the encapsulation of various industrially important active compounds. For multiple emulsion due to its complex nature utilization of emulsifier must be carefully considered to ensure a long-term stability. Thermodynamic instability in both the simple and multiple emulsion could lead to breakdown through various physicochemical mechanisms such as flocculation, coalescence, Ostwald ripening and creaming. Ostwald ripening is a process whereby large droplets grow at the expense of smaller ones due to the high Laplace pressure in the small droplets. Smaller sized droplets are resistant to destabilization mechanisms such as, coalescence, flocculation and creaming in an emulsion system. A significant phenomenon that only occurs in a multiple emulsion leading to destabilization is the difference in the osmotic pressure between the inner and external water droplets. Emulsion system has the applications in pharmaceutical industry in comparison to other industries such as food and nutraceutical industries.