We present experimental investigations on droplet deformation under simple shear flow conditions, using a computer-controlled parallel band apparatus and an optical device which allows us to record the time dependence of the droplet shape. Several methods are applied to determine the interfacial tension from the observed shape and relaxation mechanism. Specific software developed in our laboratory allows the droplet to be fixed in a certain position for extended times, in fact, indefinite. This is an advantage over most other work done in this area, where only limited time is available. In our experiments, the transient deformation of sheared droplets can be observed to reach the steady state. The measured systems were Newtonian, both droplet and fluid phase. Droplet deformation, orientation angle and retraction were studied and compared to several models. The interfacial tension of the different systems was calculated using the theories of Taylor, Rallison, and Hinch and Acrivos. The results obtained from the analysis of the droplet deformation were in very good agreement with drop detachment experiments of Feigl and co-workers. The study of orientation angle shows qualitative agreement to the theory of Hinch and Acrivos but reveals larger quantitative discrepancies for several empirical fitting parameters of the used model. Analysis of the relaxation of sheared drops provided estimates of the interfacial tension that were in very good agreement with the steady-state measurements. (C) 2004 Elsevier Inc. All rights reserved.