From an analysis of small oscillations of a viscous fluid droplet immersed in another viscous fluid a general dispersion equation is derived by which frequency and rate of damping of oscillations can be calculated for arbitrary values of droplet size, physical properties of the fluids, and interfacial viscosity and elasticity coefficients. The equation is studied for two distinct extremes of interfacial characteristics: (i) a free interface between the two fluids in which only a constant, uniform interfacial tension acts; (ii) an ‘inextensible’ interface between the two fluids, that is, a highly condensed film or membrane which, to first order, cannot be locally expanded or contracted. Results obtained are compared with those previously published for various special cases.When the viscosities of both fluids are low, the primary contribution to the rate of damping of oscillations is generally the viscous dissipation in a boundary layer near the interface, in both the free and inextensible interface situations. For this reason inviscid velocity profiles, which do not account for the boundarylayer flow, do not lead to good approximations to the damping rate. The two exceptions in which the approximation based on inviscid profiles is adequate occur when the interface is free and either the interior or exterior fluid is a gas of negligible density and viscosity.