The actin cytoskeleton plays a central role in a wide range of cellular processes, including polarization, cell shape determination, cell division and movement. From a physical point of view, the actin cytoskeleton is a far-from-equilibrium ensemble of semi flexible polymers, motor proteins and auxiliary proteins that self-organize into a myriad of dynamic structures to facilitate these diverse cellular tasks. I will describe the development of a novel model system to study cytoskeletal organization in a simplified and controlled environment within cell-like compartments. This reconstituted system provide a powerful platform to examine biological self-organization detached from the complexity of the living cell, and explore the physics of active matter under well-defined conditions.