The present study concerns the separation of fine liquid-liquid dispersions having mean droplet diameters between 20 and 100 μm by phase inversion. A theoretical model based on gravity separation is proposed. Two modes of operation of the settling device are studied: without and with bed formation. The results are compared with the theoretical predictions. As can be seen, good operating conditions always lead to high separation efficiencies and all droplets having diameters above 40 μm can be practically removed. It is shown that the bed formation allows one to increase throughput and efficiency considerably and that in this mode of operation the difference between predicted and obtained separation efficiencies is negligible. Relationships are given which allows the determination of optimal operating conditions, leading to high efficiencies.