Description: In the paper the novel soft magnetic composite system is investigated. A ferrofluid emulsion studied demonstrates the strong magnetic properties which are atypical for commonly known emulsions. Interaction of ferrofluid emulsions with a magnetic field is considered. Structural transformations in these media, such as deformation of emulsion microdroplets and emulsion inversion, are studied. The changes in the relative permeability of emulsion associated with structural transformations are investigated. The theory of the observed phenomena is developed, and the feasibility of effectively controlling the magnetic properties of ferrofluid emulsions by applying a magnetic field is demonstrated.