We consider inertial effects, for Reynolds numbers in the range 1 less than or equal to Re less than or equal to 300, on the deformation of a Newtonian drop in a steady, uniaxial extensional flow. Previous studies of a deformable bubble have demonstrated that there is a qualitative change in the nature of the shape as the dominant stresses at the interface go from viscous to dynamic pressure with increase of Reynolds number. In the present paper, we focus on the effects of finite viscosity and density of the interior fluid.