Feasibility of using nanocellulosic fiber (NF) from lime residues as a stabilizer for oil-in-water emulsion was investigated. One-step process to simultaneously prepare an emulsion and NF is proposed. NF could spontaneously form by adding appropriately prepared fiber powder into the test emulsion viz. coconut milk, which was subsequently subject to homogenization and sterilization. Properties of the samples, that is, microstructure, rheological properties, emulsion stability, and color, after sterilization and after 8-week storage at 30°C were determined. Sterilized samples exhibited pseudoplastic behavior. Samples containing higher NF concentrations exhibited higher viscosity; viscosity remained constant throughout the whole storage period. High emulsion stabilities (>97%) were observed for samples containing 0.4 to 0.8% (w/v) of NF. L * , C * , and h * of the samples were 79 to 80, 8 to 10, and 90, respectively. Three-dimensional network of NF (diameters < 50 nm) attached to fat globule surfaces formed during homogenization is postulated to help stabilize the emulsions.