Nanoemulsions have some important potential advantages over conventional emulsions for certain commercial applications due to their optical clarity, high physical stability, and ability to increase the bioavailability of lipophilic bioactives. In this study, the factors influencing droplet size and stability in nanoemulsions fabricated from a hydrocarbon oil and an anionic surfactant were examined. Octadecane oil-in-water nanoemulsions were produced by a high pressure homogenizer (microfluidizer) using sodium dodecyl sulfate (SDS) as a model anionic surfactant. The influence of homogenization pressure, number of passes, and surfactant concentration was examined. The droplet size decreased with increasing homogenization pressure, number of passes, and surfactant concentration. Nanoemulsions with low turbidity and small droplet diameters (approximate to 62 nm) could be produced under optimized conditions. Interestingly, nanoemulsions containing relatively high surfactant levels were highly susceptible to creaming when they were only passed through the homogenizer a few times, which was attributed to depletion flocculation. These results show the importance of optimizing surfactant levels to produce small droplets that are also stable to creaming.