Nanoemulsions are the transparent or translucent type of emulsion having droplet sizes ranging from 20 to 500 nm. The stability and application of nanoemulsions depend on the droplet and physicochemical characteristics. The droplet characteristics are studied through the droplet size, droplet composition, droplet concentration, zeta potential, polydispersity, and interfacial tension. The physicochemical properties are studied by their optical property, rheological property, gravitational separation, droplet aggregation, Ostwald ripening, and chemical stability. The emulsifiers and surfactants aid in the emulsification process and are selected according to the requirements of emulsification methods and expected nanoemulsion quality. The methods used for nanoemulsion preparation can be broadly classified into high-energy and low-energy methods. The high-energy methods include high-pressure valve homogenization, high-pressure microfluidic homogenization, ultrasonic homogenization, and rotor-stator homogenization. Similarly, the low energy methods are phase inversion temperature, phase inversion composition, spontaneous emulsification, membrane emulsion, and solvent displacement/solvent evaporation method. The high-energy methods are rapid in comparison to low-energy methods and can handle a large volume of liquid. The low energy methods provide better control over droplet size. Nanoemulsions have broad applications in the food industry such as in the quality enhancement and shelf-life improvement of bakery products, dairy products, meat products, fruit and vegetable products, and also in probiotics and nutraceuticals. •High energy and low energy methods are the two methods that are employed for the development of nanoemulsions.•Both natural and synthetic emulsifiers can be used for the preparation of nanoemulsions.•Nanoemulsion coatings improve the sensorial properties and the storage stability of the foods.•Nanoemulsion coatings enhance the storage stability of the probiotics and aid in their controlled release.