Thermally induced instabilities in acoustically levitated bi-component droplets(dodecane-benzene)are introduced and characterized.The dynamics involved in such droplets with lower concentration of the highly volatile component(volume fraction < 0.7 in initial fluid mixture)are divided into different stages(caving phase,ligament initiation,growth and break-ups).We provide insight into the growth of ligaments which is initiated by the momentum gained during the initial caving-in phase and leads to the final break-up phenomena.The primary mode of break-up is Rayleigh-instability type as observed for the different blends of fluid studied.We used scaling analysis to explain the complicated stages involved in the droplet lifetime.The estimated data shows reasonable match with the experimental results which validates the scaling arguments used in this paper.The break-up mode can be drastically changed to boiling and bubble formation by increasing the concentration of the highly volatile component in the initial fluid mixture(volume fraction of benzene > 0.7).Such controlled break-up modes is attributed to the combined effect of heat and acoustics along with the wide variation in the properties of the two components.