In recent years, studies on the formulation of nanoemulsions have been the focus of attention due to their potential applicability in food, pharmaceuticals, cosmetics, and agricultural industries. Nanoemulsions can be formulated using ingredients approved by the Food and Drug Administration (FDA), which assures their safety profiles to a great extent. Bioactive compounds such as essential oils although have strong biological properties and antimicrobial compounds, their usage is restricted due to their high volatility, instability, and hydrophobic nature. Therefore, nanoemulsion as carrier vehicle can be used to encapsulate essential oils to obtain stable and enhanced physicochemical characteristics of the essential oils. This review details the structure, formulation, and characterization techniques used for nanoemulsions, with a focus on the essential oil‐based nanoemulsions which have the potential to be used as antimicrobial and anticancer therapeutics.