The bulk dynamics of immiscible polymer blends during flow is relatively well understood, especially when the system contains Newtonian components. Recently, a number of studies have focused on flow of immiscible blends in confined geometries. In that case, the morphology development is not only affected by the material characteristics and the type of flow, but also by the degree of confinement. Here, we present an overview on the morphology development in immiscible two-phase blends in confined shear flow. Firstly, we focus on the typical microstructures that are observed in confined dilute blends. Secondly, in order to understand those peculiar morphologies, the systematic studies on single droplets in confined shear flow are reviewed. In addition to the experimental work, theoretical, phenomenological, and numerical models that include the effects of confinement are discussed.