This work deals with the development of a numerical method for simulating viscoelastic axisymmetric free surface flow of an Oldroyd B fluid. A novel formulation is developed for the computation of the non-Newtonian extra-stress components on rigid boundaries and on the symmetry axis. The full free surface stress conditions are employed. The resulting governing equations are solved by finite differences on a Marker-and-cell (MAC) type grid. Validation is provided by simulating a pipe flow problem. The classical die-swell problem is solved and swelling ratios are provided. The height of the splash caused by a falling liquid drop for various Reynolds and Weissenberg numbers is then studied, and the height of the splash is shown to diminish with increasing viscoelasticity.