The flow regime found in the downstream half of the BWR assembly can be described as an annular film flow with a central core of vapour with suspended droplets. This study presents the application of the fluid film model available in STAR-CCM+ to analyze the interplay between the vapour flow and the liquid film dynamics. The film model, based on depth-averaged equations, can be used to simulate film depth and velocity over complex geometries. Built on sound mathematical basis and applied to a wide variety of areas, the fluid film model, however, has not been widely used to study annular flow in nuclear fuel assemblies. Applying this model to a simplified geometry of a single rod with different gaps, the basic relationship between the vapour velocity, liquid film thickness and velocity distribution along the circumference of the rod is clarified. The minimum vapour velocity required to transport a liquid film along the surface of a fuel rod of a specific length against gravity was found using first-principles force balances. The model was then applied to a real, but simplified assembly geometry where the resulting flow pattern was primarily affected by the presence of part length rods. The minimum velocity required to transport a liquid film along the fuel rods in the assembly against gravity was found to be close to the range of velocities obtained using sub-channel codes. Strong circumferential variation in the wall shear across a short arc-length was observed for some fuel rods. The variation in wall shear also results in a corresponding variation in film velocity and film thickness and presumably has a strong impact on the local heat and mass-transfer characteristics. Cross flow from high resistance regions in the assembly towards lower resistance regions has a strong impact in terms of variations in the film thickness on the rods that are the furthest away from the low resistance paths.The modelling palette for the depth-averaged film model contains several features that can extend the validity of the modelling used in this study, such as the presence of droplets in the vapour core, deposition of droplets on to the film, heat transfer and boiling, and the influence of spacers in disrupting the liquid film. These features were not considered in this study and remain avenues for future work. The use of time-averaged turbulence modelling results in damping of unsteadiness of the vapour flow and perturbations in the film thickness. For better estimates of unsteady effects use of turbulence models such as the Large Eddy Simulation method is recommended. Current state-of-the-art in predicting dispersed annular flow using liquid film models is limited to single rods. The generalized depth-averaged film model can be applied to complex geometries including the effect of spacers.