Coacervates, droplets formed by liquid-liquid phase separation (LLPS), are primitive cell-like compartments that could have played a crucial role in the emergence of life. These droplets, rich in charged and hydrophobic moieties, create a distinct local physicochemical environment that can enhance reaction rates and selectivity. The mechanisms by which coacervates accelerate reactions include local concentration enhancement, stabilization of products, destabilization of reactants, and lowering of transition states. Coacervates can also affect the energy landscape of reactions, influencing their kinetics and thermodynamics. For example, the apolar nature of coacervates can lower the effective polarity, stabilize transition states, and destabilize reactants. Additionally, the high macromolecular content and viscosity of coacervates can favor reactions involving large molecules and complexation. The surface of coacervates, often charged, can also act as catalytic sites, accumulating metal ions and catalytic amino acids. These properties make coacervates potential "catalytic microcompartments" that could have functioned similarly to enzymes in prebiotic reactions. A case study on ribozyme reactions in coacervates illustrates how the local environment can tune reaction rates and selectivity, highlighting the importance of coacervate protocells in prebiotic chemistry.Coacervates, droplets formed by liquid-liquid phase separation (LLPS), are primitive cell-like compartments that could have played a crucial role in the emergence of life. These droplets, rich in charged and hydrophobic moieties, create a distinct local physicochemical environment that can enhance reaction rates and selectivity. The mechanisms by which coacervates accelerate reactions include local concentration enhancement, stabilization of products, destabilization of reactants, and lowering of transition states. Coacervates can also affect the energy landscape of reactions, influencing their kinetics and thermodynamics. For example, the apolar nature of coacervates can lower the effective polarity, stabilize transition states, and destabilize reactants. Additionally, the high macromolecular content and viscosity of coacervates can favor reactions involving large molecules and complexation. The surface of coacervates, often charged, can also act as catalytic sites, accumulating metal ions and catalytic amino acids. These properties make coacervates potential "catalytic microcompartments" that could have functioned similarly to enzymes in prebiotic reactions. A case study on ribozyme reactions in coacervates illustrates how the local environment can tune reaction rates and selectivity, highlighting the importance of coacervate protocells in prebiotic chemistry.