Using solid fillers to make composite materials in an additive manufacturing process has been extensively studied but there is no research on incorporating immiscible liquids in the process. To study this, a unique die was built which had a wall profile based on a hyperbolic equation and imposed constant extensional rate at the centerline. The deformation seen by a droplet of Castor oil immiscible in Silicone oil matrix was studied for various positions of injection into the channel using high speed imagery. Droplets injected at the center of the channel did not see any significant deformation while the droplets injected at an offset position stretched and reached the affine state. CFD simulations confirmed the existence of a strong shear effect closer to the walls. The results from this research will aid in understanding liquid filler behavior in a polymer flow and helps in incorporating liquids in polymer based additive manufacturing.