In order to obtain the fundamental information required to prepare microcapsules by interfacial polycondensation polymerization, oil-in-water emulsions were prepared by dispersing limonene oil in the aqueous solution of poly(vinyl alcohol) (PVA) with different degrees of polymerization and saponification. Emulsion prepared was characterized by measuring the droplet diameters and the physical properties of emulsion. Emulsion stability was estimated by measuring the transient height of the oil phase layer and the interfacial excess concentration for each PVA. PVA with higher surface activity showed smaller occupied interfacial area due to the larger excess concentration and resulted in stabilized emulsion.