A three-fluid model of the dispersed-annular regime of two-phase flow is suggested. The model is based on the conservation equations of mass, momentum, and energy for the gas phase, the dispersed phase (droplets), and the film. Additionally, this model includes the equation for the number density of particles of the dispersed phase, which is used to determine the mean particle size. Calculations are compared with experimental data on the entrainment coefficient, film and droplet flow rates, film thickness, pressure drop, and droplet size. (C) 2004 Elsevier Ltd. All rights reserved.