The effect of droplet elasticity on transient deformation of isolated droplets in immiscible polymer blends of equal viscosity was investigated. In terms of the deformation parameter, Def*=a*-c/a*+c where a* and c are apparent drop principal axes, it undergoes two cycles of positive oscillations before reaching a negative value, followed by one cycle of oscillation before attaining a steady state negative value. This behavior was observed when Capillary number, Ca, was varied between 3 and 9 at a fixed Weissenber number, Wi, of 0.31, and when Ca number was held fixed at 8 and Wi number was varied between 0.21 and 0.40. In another blend of relatively lower Wi number of 0.21, one cycle of oscillation in Def* was observed before reaching steady state negative values when Ca number was varied between 3 and 14. The steady state Def* varies inversely with Ca number, with a stronger dependence for the blend with higher Wi number. The magnitude of oscillation increases with increasing Ca and Wi numbers. The critical Ca was found to be 12 and 14 for the two blends studied; these values are about 30 times greater than that of Newtonian blends.