With the rapid advancements in nutrition and dietary management, infant formulas for special medical purposes (IFSMPs) have been developed to cater to the unique nutraceutical requirements of infants with specific medical conditions or physiological features. However, there are various challenges in effectively preserving and maximizing the health benefits of the specific nutraceuticals incorporated in IFSMPs. This review provides an overview of the nutritional compositions of various IFSMPs and highlights the challenges associated with the effective supplementation of specific nutraceuticals for infants. In addition, it emphasizes the promising potential of emulsion delivery systems, which possess both encapsulation and delivery features, to significantly improve the solubility, stability, oral acceptance, and bioavailability (BA) of nutraceutical bioactives. Based on this information, this work proposes detailed strategies for designing and developing model IFSMP emulsions to enhance the BA of specially required nutraceuticals. Key areas covered include emulsion stabilization, selective release mechanisms, and effective absorption of nutraceuticals. By following these proposals, researchers and industry professionals can design and optimize emulsion‐based IFSMPs with enhanced health benefits. This review not only outlines the developmental states of IFSMP formulations but also identifies future research directions aimed at improving the physiological health benefits of IFSMPs. This effort lays the theoretical groundwork for the further development of emulsion‐type IFSMP in infant formula (IF) industry, positioning the IF industry to better meet the complex needs of infants requiring specialized nutrition.