Most properties of food emulsions depend on emulsion microstructure, which is largely influenced by mean droplet diameter and droplet size distribution. The correlation between the properties and the microstructure is called property function. The process function describes the relationship between the microstructure and the process. If both functions are known, the properties of an emulsion may be derived directly from the process parameters. Although, for most food emulsions, the property functions are basically unknown, an example is discussed showing the functionality between important properties and the microstructure. The process function can be determined approximately by using the concept of energy density describing the relationship between mean droplet size and energy input per unit volume.The droplet size of an emulsion depends on the intensity and mechanism of droplet disruption and on the extent of superimposed or subsequent droplet coalescence. Recent experiments have shown that the emulsifier, by reducing the interfacial tension, does not improve droplet disruption. The reason for this fact will be discussed and shown that only the interfacial tension of the unoccupied interface is relevant for droplet comminution. Thus the result of emulsification with the same apparatus at constant energy density is only determined by the time the emulsifier needs to stabilise the newly formed interface. A novel method to measure droplet coalescence during or directly after emulsification is presented.Several methods suitable for the production of emulsions with the desired microstructure will be presented. Among these, newly developed valves inducing elongational flow have allowed for greatly increasing homogenisation efficiency in high pressure homogenisers and producing nanoemulsions with suitable emulsifier systems. Advances and new processes in emulsification with membranes and micro-structured systems as well as their potential will also be discussed.Finally, an example demonstrates how nanoemulsions can be used to design functional foods with the help of the principles of structured food emulsions including the property and process functions. Phytosterols may significantly reduce cholesterol levels in humans, if they are appropriately formulated. Due to their poor solubility in water and oil, product engineering is required to achieve satisfactory dose-responses. Their interface-activity and tendency towards interface crystallisation further requires the application of certain emulsifier systems. With reference to cell culture studies on the bioavailability of carotenoids, a property function for phytosterol loaded emulsions can be derived exemplarily showing how the concept of process and property functions can be applied for formulation and quality improvement of a product using the principles of structured food emulsions.