Automated emotion recognition is crucial in identifying and monitoring psychological disorders. Although several electroencephalography (EEG)-based methods have been explored for emotion recognition, capturing the subtle oscillations within EEG signals associated with distinct emotional states remains a persistent challenge. Nonlinear phase-based functional connectivity (FC) can capture the intricate time-varying patterns of brain activity during the processing of emotions. In this work, an attempt has been made to characterize the EEG-based emotional states using nonlinear phase-based FC techniques. For this, the EEG signals are obtained from the publicly available DEAP database and decomposed into four frequency bands: Theta (4–7[Formula: see text]Hz), alpha (8–12[Formula: see text]Hz), beta (13–30[Formula: see text]Hz) and gamma (30–45[Formula: see text]Hz). Three nonlinear phase-based FC measures, namely phase lag index (PLI), phase locking value (PLV) and Rho index, are extracted from individual frequency bands. Two types of features, namely network features and FC indices, are fed to three classifiers, namely random forest (RF), extreme gradient boosting (XGB) and K-Nearest Neighbors (KNN). The results reveal that the proposed approach can capture EEG dynamics to characterize emotional states. The gamma band-based Rho index demonstrated prominence in discriminating arousal and valence emotional states. The utilization of the Rho index-based FC feature effectively reveals interactions among cortical brain regions in response to audio-visual stimuli. Thus, the proposed approach could be extended to classifying various emotional states in clinical settings.