In this study, we perform boundary-integral simulations to investigate the role of interfacial viscosity in the deformation and breakup of a single droplet suspended in an axisymmetric extensional flow under the Stokes flow regime. We model the insoluble surfactant monolayer using the Boussinesq–Scriven constitutive relationship for a Newtonian interface. We compare the deformation and breakup results from our boundary-element simulations with results from small deformation perturbation theories. We observe that the surface shear/dilational viscosity increases/decreases the critical capillary number beyond which the droplet becomes unstable and breaks apart by reducing/increasing the droplet deformation at a given capillary number compared with a clean droplet. We present the relative importance of surface shear and dilational viscosity on droplet stability based on their measured values reported in experimental studies on surfactants, lipid bilayers and proteins. In the second half of the paper, we incorporate the effect of surfactant transport by solving the time-dependent convection–diffusion equation and consider a nonlinear equation of state (Langmuir adsorption isotherm) to correlate the interfacial tension with the changes in surfactant concentration. We explore the coupled influence of pressure-dependent surface viscosity and Marangoni stresses on droplet deformation and breakup. In the case of a droplet with pressure-dependent surface shear viscosity, we find that a droplet with pressure-thinning/thickening surfactant is less/more deformed than a droplet with pressure-independent surfactant. We conclude by discussing the combined impact of surface viscosity and surfactant transport on the relaxation of an initially extended droplet in a quiescent external fluid.