Abstract: An emulsion is defined as a heterogeneous system, consisting at least two immiscible liquids or phases, one of which is dispersed as droplets in the other liquid. VCO is gaining wide popularity in the scientific field and among the public due to its various health benefits and special characteristics. The main objectives of this study were to formulate an emulsion containing VCO as the oil phase and Tween 20® as the surfactant and to optimize the emulsion with appropriate ratio of oil: water: surfactant. The effects of high shear on the optimized formulae and their characterizations were also studied in this project. Based on stability studies the proper ratios of oil, water and surfactant were selected. The optimized formulae were further studied for its characterization such as Droplets size measurement, pH value, Creaming index, Viscosity and Microscopic studies. In conclusion best formulae with and without high sheer homogenization is o/w emulsion and it is consisting with oil 32 % (w/w), surfactant 32 % (w/w) and water 36 % (w/w).