Shock-droplet interactions occur in a spectrum of high-speed propulsion systems involving liquid fuels. When the combustion chamber pressure is above the critical pressure of the fuel, transcritical behaviour involving the transition from liquid-like to gas-like states is observed. Our understanding of multiphase-shock interaction is significantly less developed than its gasphase counterpart (i.e., shock-bubble interaction) and is particularly limited at transcritical conditions. We consider the interaction of a shockwave with a liquid n-dodecane droplet exposed to a nitrogen environment at a supercritical pressure. A fully-conservative diffuseinterface framework coupled with the Peng-Robinson equation of state is developed to accurately determine the state of the fluid as the shock propagates through the droplet. The shock-droplet interaction results show the development of interfacial instabilities and an axial jet.