A three dimensional finite element scheme for Direct Numerical Simulation (DNS) of viscoelastic two phase flows is implemented. The scheme uses the Level Set Method to track the interface and the Marchuk-Yanenko operator splitting technique to decouple the difficulties associated with the governing equations. Using this numerical scheme, the shape of Newtonian drops in a simple shear flow of viscoelastic fluid and vice versa are analyzed as a function of Capillary number, Deborah number and polymer concentration. The viscoelastic fluid is modeled via the Oldroyd-B model. The role of viscoelastic stresses in deformation of a drop subjected to simple shear flow and its effect on the steady state shape is analyzed. Our results compare favorably with existing experimental data and also help in understanding the role of viscoelastic stresses in drop deformation.

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