This study aims to elucidate, for the first time, the intricate fundamental physics governing the dispersion dynamics of a surfactant-laden two-phase liquid–liquid system in the well-known SMX static mixer. Following the analysis carried out in the preceding publication to this work (Valdes et al., 2023), a comparative assessment of the most relevant and recurrent deformation and breakup mechanisms is conducted for a 3-drop scenario and then extrapolated to a more industrially-relevant multi-drop set-up. A parametric study on relevant surfactant physico-chemical parameters (i.e., elasticity, sorption kinetics) is undertaken, isolating each property by considering insoluble and soluble surfactants. In addition, the role of Marangoni stresses on the deformation and breakage dynamics is explored. High fidelity, three-dimensional direct numerical simulations coupled with a state-of-the-art hybrid interface capturing algorithm are carried out, providing a wealth of information previously inaccessible via volume-averaged or experimental approaches.