The evolution of a liquid droplet in an electric field has been analyzed. Microgravity environment has been used to isolate droplet from all other effects. The droplet is deformed by induced polarization effect only. The deformation process consists of rapid stretching along the field lines, formation of Taylor cones, ejection of fine spray from the pointed ends and break-up of the main body of the droplet due to capillary instability. The experimental and theoretical results agree until formation of Taylor cones occurs.