These unique nanoemulsions can be made at a very low surfactant-to-oil ratio with very simple processing required, such as high shear mixing, homogenization and in some cases, simple mixing. It is known that nanoemulsions perform better than conventional emulsion systems because of their small particle size, the absence of weighting agents, and their higher stability against gravitational separation. Due to the fact that the droplets do not aggregate, they maintain a transparent appearance when diluted and have been proven to enhance the bioavailability of lipophilic substances. As a result, flavor oils and oil soluble colors when formulated in a nanoemulsion can be incorporated into optically transparent beverages without losing their transparent character. Nanoemulsions containing vitamin E or oil-soluble drugs can be released in a gentle and sustained way as a result of the nanoemulsion’s interfacial film, which leads to improvement in drug bioavailability across the skin. This review provides an overview on the current statues of nanoemulsions, their preparation and ingredients used and their application as it applies to non-water soluble flavors, colors functional ingredients and drug delivery.