We report the dynamics of a droplet levitated in a multi-emitter, single-axis acoustic levitator. The deformation and atomisation behaviour of the droplet in the acoustic field displays myriad complex phenomena, in a series of events. These include the primary breakup of the droplet, wherein it exhibits stable levitation, deformation, sheet formation and equatorial atomisation, followed by its secondary breakup, which could be of various types such as umbrella, bag, bubble or multi-stage breakup. A large number of tiny atomised droplets, formed as a result of the primary and secondary breakup, can remain levitated in the acoustic levitator and exhibit aggregation and coalescence. The visualisation of the interfacial instabilities on the surface of the liquid sheet using both side- and top-view imaging is presented. An approximate size distribution of the atomised droplets is also provided. The stable levitation of the droplet is due to a balance of acoustic and gravitational forces while the resulting ellipsoidal shape of the droplet is a consequence of the balance of the deforming acoustic force and the restoring capillary force. Stronger acoustic forces can no longer be balanced by capillary forces, resulting in a highly flattened droplet, with a thin liquid sheet at the edge (equatorial region). The thinning of the sheet is caused by the differential acceleration induced by the increasing pressure difference between the poles and the equator as the sheet deforms. When the sheet thickness reduces to of the order of a few microns, Faraday waves develop at the thinnest region (preceding the rim), which causes the generation of tiny-sized droplets that are ejected perpendicular to the sheet. The corresponding hole formation results in a perforated sheet that causes the detachment of the annular rim, which breaks due to Rayleigh–Plateau (RP) instability. The radial ligaments generated in the sheet, possibly due to Rayleigh–Taylor (RT) instability, break into droplets of different sizes. The secondary breakup exhibits Weber number dependency and includes umbrella, bag, bubble or multi-stage types, ultimately resulting in the complete atomisation of the droplets. Both the primary and the secondary breakup of the droplet involve interfacial instabilities such as Faraday, Kelvin–Helmholtz, RT and RP and are well supported by visual evidence.