We present a reproducible protocol to prepare droplet-embedded vesicles (DEVs) consisting of an oil droplet embedded within a phospholipid bilayer. This model system mimics a cellular lipid droplet (LD) in physical contact with the endoplasmic reticulum (ER) bilayer. It has the advantage that the lipid composition and the biophysical properties of the droplet and the bilayer are controlled and tunable. DEVs can be used to study LD biogenesis factors and determinants of protein binding between ER and LD interfaces. For complete details on the use and execution of this protocol, please refer to Chorlay and Thiam (2020) and Santinho et al. (2020).