This document presents theories of dispersion and mechanisms of emulsion formation. It discusses four traditional theories of dispersion: viscosity theory, film theory, wedge theory, and interfacial tension theory. It also describes limitations of these theories. The document then introduces a modern approach involving droplet formation and stabilization by emulsifying agents. Three mechanisms of emulsion stabilization are described: monomolecular adsorption, multimolecular adsorption, and solid particle adsorption.