A boundary integral method for the simulation of the time-dependent deformation of Newtonian or non-Newtonian drops suspended in a Newtonian fluid is developed. The boundary integral formulation for Stokes flow is used and the non-Newtonian stress is treated as a source term which yields an extra integral over the domain of the drop. The implementation of the boundary conditions is facilitated by rewriting the domain integral by means of the Gauss divergence theorem. To apply the divergence theorem smoothness assumptions are made concerning the non-Newtonian stress tensor. The correctness of these assumptions in actual simulations is checked with a numerical validation procedure. The method appears mathematically correct and the numerical algorithm is second order accurate. Besides this validation we present simulation results for a Newtonian drop and a drop consisting of an Oldroyd-B fluid. The results for Newtonian and non-Newtonian drops in two dimensions indicate that the steady state deformation is quite independent of the drop-fluid. The deformation process, however, appears to be strongly dependent on the drop-fluid. For the non-Newtonian drop a mechanical model is developed to describe the time-dependent deformation of the cylinder for small capillary numbers.