Abstract. -A lattice Boltzmann model is introduced which simulates oil-water-surfactant mixtures. The model is based on a Ginzburg-Landau free energy with two scalar order parameters. Diffusive and hydrodynamic transport is included. Results are presented showing how the surfactant diffuses to the oil-water interfaces thus lowering the surface tension and leading to spontaneous emulsification. The rate of emulsification depends on the viscosity of the ternary fluid.Introduction. -The addition of surfactant to a binary mixture of oil and water can produce many different complex structures on a mesoscopic length scale. The surfactant molecules move to the interface and lower the oil-water interfacial tension. This can result in, for example, lamellar, micellar, microemulsion or hexagonal arrangements of the oil and water domains [1,2].The equilibrium behaviour of such amphiphilic systems is well understood. However the dynamics of the self-assembly of the mesoscale phases and their rheology are less well investigated. This is a difficult problem because of the interplay between several relevant transport mechanisms, the diffusion of the constituent components and their hydrodynamic flow. To date models of amphiphilic rheology which treat hydrodynamic effects include time-dependent Ginzburg-Landau approaches [3,4], molecular dynamics[5] and a lattice gas cellular automaton scheme based on microscopic interactions [6,7].The aim of this Letter is to introduce an alternative numerical scheme that can model the dynamics of amphiphilic systems in such a way that diffusive and hydrodynamic mechanisms are included. The numerical approach that we use is lattice Boltzmann simulations which have emerged as a useful tool to study the dynamics of complex fluids [8]. We base our approach on that described by Orlandini et. al. [9,10] where the correct equilibrium of the fluid is imposed by choosing an appropriate free energy and including it in such a way that the fluid spontaneously reaches the equilibrium described by its minimum.Previous lattice Boltzmann models of amphiphilic systems have been based on a single order