The effect of dispersed-phase elasticity on steady-state deformation and breakup of isolated droplets for polybutadiene/poly(dimethyl siloxane) blends in simple shearing flow is investigated systematically for values of the dispersed-phase Weissenberg number (Wi(d)) ranging up to around 3, where the Weissenberg number is defined as the ratio of the first normal stress difference to twice the shear stress at the imposed shear rate. The dependence on droplet elasticity of steady-state morphology for 10%-dispersed phase blends is also studied. The polybutadiene droplet phase is an elastic "Boger" fluid prepared by dissolving a. high-molecular-weight polybutadiene into a low-molecular-weight Newtonian polybutadiene melt. To isolate the contribution of droplet elasticity, all experiments were done at a fixed viscosity ratio of around unity, achieved by adjusting the temperature appropriately for each blend. When the droplet elasticity increases, the steady-state deformation of isolated droplets decreases for fixed capillary number. The critical capillary number for breakup (Ca-crit) increases linearly with the Weissenberg number of the droplet phase (Wid) UP to a value of Wi(d) of around unity. When Wi(d) is greater than unity, Ca-crit seems to approach an asymptotic value of 0.95 for high values of Wi(d). For 10%-dispersed phase blends, the steady-state capillary number (Ca-ss) calculated from a volume-averaged droplet diameter is less than the Ca-crit for isolated droplets for the same blend. Ca-ss increases monotonically with the first normal stress difference of the droplet phase. Droplet widening in the vorticity direction is not observed even at droplet Weissenbeirg numbers much in excess of those for which widening is observed in blends of melts' suggesting that widening is strongly influenced by factors other than the first normal stress difference, such as shear thinning or second normal stress differences. (C) 2004 The Society of Rheology.