We review the development of diffuse-interface models of hydrodynamics
and their application to a wide variety of interfacial phenomena. The
se models have been applied successfully to situations in which the ph
ysical phenomena of interest have a length scale commensurate with the
thickness of the interfacial region (e.g. near-critical interfacial p
henomena or small-scale flows such as those occurring near contact lin
es) and fluid flows involving large interface deformations and/or topo
logical changes (e.g. breakup and coalescence events associated with f
luid jets, droplets, and large-deformation waves). We discuss the issu
es involved in formulating diffuse-interface models for single-compone
nt and binary fluids. Recent applications and computations using these
models are discussed in each case. Further, we address issues includi
ng sharp-interface analyses that relate these models to the classical
free-boundary problem, computational approaches to describe interfacia
l phenomena, and models of fully miscible fluids.