Synopsis In recent years, there have been a great deal of interest in applications of microemulsions, liposomes (vesicles) and multiple emulsions in cosmetic formulations. These systems will provide the cosmetic industry with new types of formulations which are easier to apply, better functional benefit and potentially safer formulations. Microemulsions are thermodynamically stable systems and hence shelf life is no problem. Many cosmetic ingredients can be adequately solubilized in the swollen micelles of the microemulsions. Such solubilized systems may enhance transport and diffusion through various barriers, eg., the skin, thus enhancing the efficacy of the formulations. However, microemulsions may cause skin irritation by disrupting the liquid crystalline structure of the stratum corneum. This problem may be overcome by formulating microemulsions, which on evaporation produce lamellar liquid crystalline structures. The problem of skin irritation is certainly reduced or eliminated using liposomes or vesicles, which offer an alternative to microemulsions. The principles for formation and stabilization of vesicles are discussed in this paper and research work is needed to produce nanocapsules from liposomes, using polymerizable surfactants. Multiple emulsions of the water/oil/water (w/o/w) or oil/water/oil (o/w/o) types are also valuable systems for formulating cosmetics. In the first place, they offer a means of sustained release of the various ingredients. Secondly, they allow one to separate the various ingredients in the formulation, thus preventing their possible interaction. The basic principles required for preparation of stable multiple emulsions are summarised. Developments of polymeric surfactants led to the formulation of stable multiple emulsions. An example of a recently formulated stable w/o/w multiple emulsion is given in this paper The stability of the system was investigated using optical microscopy. Creaming occurred on storage, particularly at high temperature (40 degrees C) and this was significantly reduced by addition of Kelzan (a polysaccharide with high molecular weight). The final formulation was studied rheological techniques.