Organic farming and new trends toward the use of safer insecticides for crop protection have created new opportunities for botanical insecticides in the pesticide market. In this study, the botanical insecticide nicotine was formulated as a dispersion (20 vol %) stabilized by sodium caseinate, with nicotine oleate solutions used as the dispersed phase. The formulation showed a phase transition on increasing the nicotine oleate concentration, being an emulsion at 7.5-8.2 wt %, a suspo-emulsion at 8.2-9.7 wt %, and a suspension at 9.7-10.8 wt %. Biological activity, apparent viscosity, dispersion time, and protein surface coverage were dependent on nicotine oleate concentration. The emulsion with 8.2 wt % nicotine oleate and the suspo-emulsion with 8.7 wt % nicotine oleate were found to be the most appropriate formulations for insecticide purposes due to their high bioactivity, low viscosity, and low dispersion time. Nicotine oleate formulations showed good creaming and microbiological stability for at least 4 months without losing their biological activity.