This paper is to continue our previous work Niu (Int. J. Numer. Meth. Fluids 2001; 36:351–371) on solving a two-fluid model for compressible liquid–gas flows using the AUSMDV scheme. We first propose a pressure–velocity-based diffusion term originally der This paper is to continue our previous work Niu (Int. J. Numer. Meth. Fluids 2001; 36:351–371) on solving a two-fluid model for compressible liquid–gas flows using the AUSMDV scheme. We first propose a pressure–velocity-based diffusion term originally der