A two-phase velocity-scalar filtered mass density function (TVSFMDF) formulation developed for large eddy simulation (LES) is applied to a temporally developing counter-current mixing layer seeded with water droplets. Closure models for both the dispersed and carrier phases are developed and implemented that are self-consistent with the original TVSFMDF mathematical formulation developed by Carrara and Des Jardin. Several simulation cases are conducted to examine the sensitivity of both evaporating and non-evaporating droplet dispersion on various levels of subgrid scale (SGS) modeling approximation - highlighting the importance of variations in composition space in the phase-coupling terms. (C) 2008 Elsevier Ltd. All rights reserved.