In this study, the effects of cosurfactant on phase equilibrium and dynamic behavior were studied in systems containing nonylphenol ethoxylate (NP) surfactant solutions and nonpolar hydrocarbon oils. All the cosurfactants used during this study such as n-pentanol, n-octanol and n-decanol acted as a hydrophobic additive and the hydrophobic effect was found to increase with both increases in chain length and amount of addition of a cosurfactant. Dynamic behavior studies under hydrophilic conditions showed that the solubilization of hydrocarbon oil by NP micellar solution is controlled by an interface-controlled mechanism rather than a diffusion-controlled mechanism. Both spontaneous emulsification of water into oil phase and expansion of oil drop were observed under lipophilic conditions because of diffusion of surfactant and water into oil phase. Under conditions of a three phase region including a middle-phase microemulsion, both rapid solubilization and emulsification of oil into aqueous solutions were found mainly due to the existence of ultralow interfacial tension.