An experimental study of the microstructural evolution of an immiscible basaltic emulsion shows that the Fe-rich liquid forms homogeneously nucleated droplets dispersed in a continuous Si-rich liquid, together with droplets heterogeneously nucleated on plagioclase, magnetite, and pyroxene. Heterogeneous nucleation is likely promoted by localised compositional heterogeneities around growing crystals. The wetting angle of Fe-rich droplets on both plagioclase and magnetite increases with decreasing temperature. Droplet coarsening occurs by a combination of diffusion-controlled growth and Ostwald ripening, with an insignificant contribution from coalescence. Characteristic microstructures resulting from the interaction of immiscible Fe-rich liquid with crystal grains during crystal growth can potentially be used as an indicator of liquid unmixing in fully crystallised natural samples. In magma bodies < ~10 m in size, gravitationally-driven segregation of immiscible Fe-rich droplets is unlikely to be significant.