Abstract: Most of the drugs are poorly water soluble or lipophilic in nature, that’s why we are facing the problem of poor solubility of drugs, it also affect the bioavailability of drugs. Lipid emulsion (LE) is one of the best methods to improve the solubility of lipophilic drugs. Since 1962 the improvement of lipid emulsions were observed as intralipid iodinated lipid emulsion, Physostigmine salicylate lipid emulsions Amphotericin B lipid emulsion, tcopherol lipid emulsions, Apomorphine, Lipid emulsion as antidote has been occurred. The lipid emulsions are potential carrier for poorly water soluble drugs. The components which are used in lipid emulsions are oils, emulsifiers, buffering agents, antioxidants, chelating agents and preservatives. Oils and emulsifiers play important role in lipid emulsions.