The creeping flow equations have been solved to account for effects of shear on drop shape when the influence of neighboring drops is considered. A cell model is used to account for finite concentrations of the dispersed phase. From these results a constitutive equation is derived and implications for several flows are discussed. The shape and orientation of drops are computed and compared with existing data. Finally, dynamic viscosity and rigidity are obtained for nondilute suspensions of viscoelastic particles in an oscillatory shear flow.