The present review outlines recent advances in coacervate based research, their historical background and area of diversification. Methods of their preparation, encapsulation, theoretical overview, coacervation induced nano particle formation, applications in various fields have been covered. Chemically modified coacervates used in drug delivery research are discussed critically to evaluate the usefulness of these system in delivering bioactive molecules. From literature survey, it is realized that coacervate based research in drug delivery as well as in proto cellular biology have increased rapidly. Hence the present review is timely.