  Eshelby's theory is the foundation of composite mechanics, allowing
calculation of the effective elastic moduli of composites from a knowledge of
their microstructure. However it ignores interfacial stress and only applies to
very dilute composites -- i.e. where any inclusions are widely spaced apart.
Here, within the framework of the Mori-Tanaka multiphase approximation scheme,
we extend Eshelby's theory to treat a composite with interfacial stress in the
non-dilute limit. In particular we calculate the elastic moduli of composites
comprised of a compliant, elastic solid hosting a non-dilute distribution of
identical liquid droplets. The composite stiffness depends strongly on the
ratio of the droplet size, $R$, to an elastocapillary length scale, $L$.
Interfacial tension substantially impacts the effective elastic moduli of the
composite when $R/L\lesssim 100$. When $R < 3L/2$ ($R=3L/2$) liquid inclusions
stiffen (cloak the far-field signature of) the solid.
