An immiscible lipophilic or hydrophilic liquid phase is separated respectively from a continuous hydrophilic or a lipophilic phase liquid. Fibers having hydrophilic and hydrophobic properties are formed into a filter. The separation mechanism involves coalescence of the small droplets into larger droplets as the immiscible liquid flows through the fiber filter, and release of the large immiscible droplets from the filter. With respect to separation of a hydrophilic immiscible fluid in a lipophilic continuous fluid, the hydrophobic fibers cause small water droplets to migrate towards the hydrophilic fibers whereby large droplets are formed on hydrophilic surface. The large droplets coalescence until they are so large that they are released and drained off of the filter. The filter media can be designed by mixing hydrophilic and hydrophobic fibers in various proportions to achieve an optimum wettability range for separation of the immiscible liquid from the continuous phase liquid.