Fuel injection and mixing is extremely important for efficient combustion in an IC engine. In order to develop an effective droplet evaporation model for such applications, evaporation from the surface of multiple droplets has been considered in this study. Droplets are composed of a binary mixture of ethanol and iso-octane. Numerical study has been performed using commercially available CFD software Ansys Fluent 13.0. Liquid/gas interface of the droplets was tracked using VOF multiphase model. As ethanol and iso-octane form a highly non-ideal mixture, vapour-liquid-equilibrium (VLE) calculations were made using UNIFAC group contribution method. Source terms arising due to interfacial mass transfer are implemented in the continuity, momentum, energy and species equations. VLE calculations and source terms for the various transport equations were implemented using user defined subroutines. Copyright © 2012 by ASME.