This　study　is　to　understand　confinement　effect　on　the　dynamical　behaviour　of　a　droplet　immersed　in　an　immiscible　liquid　subjected　to　a　simple　shear　flow.　The　lattice　Boltzmann　method,　which　uses　a　forcing　term　and　a　recolouring　algorithm　to　realize　the　interfacial　tension　effect　and　phase　separation　respectively,　is　adopted　to　systematically　study　droplet　deformation　and　breakup　in　confined　conditions.　The　effects　of　capillary　number,　viscosity　ratio　of　the　droplet　to　the　carrier　liquid,　and　confinement　ratio　are　studied.　The　simulation　results　are　compared　against　the　theoretical　predictions,　experimental　and　numerical　data　available　in　literature.　We　find　that　increasing　confinement　ratio　will　enhance　deformation,　and　the　maximum　deformation　occurs　at　the　viscosity　ratio　of　unity.　The　droplet　is　found　to　orient　more　towards　the　flow　direction　with　increasing　viscosity　ratio　or　confinement　ratio.　Also,　it　is　noticed　that　the　wall　effect　becomes　more　significant　for　the　confinement　ratios　larger　than　0.4.　Finally,　the　critical　capillary　number,　above　which　the　droplet　breakup　occurs,　is　found　to　be　mildly　affected　by　the　confinement　for　the　viscosity　ratio　of　unity.　Upon　increasing　the　confinement　ratio,　the　critical　capillary　number　increases　for　the　viscosity　ratios　less　than　unity,　but　decreases　for　the　viscosity　ratios　more　than　unity.　(C)　2016　The　Authors.　Published　by　Elsevier　B.V.