ABSTRACTDensity functional theory of freezing is used to study the phase transitions in a system of spherical colloidal particles dispersed in nematic host confined to two dimensions. We have considered both the one-component and two-component systems of the colloidal dispersions. Particles are assumed to interact via director distortion-mediated purely repulsive potential which scales as the fifth power of the inverse interparticle separation. The pair correlation functions needed as input information in the density functional theory are calculated by solving Roger–Young integral equation theory. In one-component system, a triangular crystalline phase is found to be stable. On the other hand, considering the freezing of the fluid phase of the binary mixture into a substitutionally disordered triangular solid, the temperature–composition phase diagram is found to have spindle shape for the ratio of quadrupole moment of the particles of the components being 0.9 and 0.8. The phase diagram changes to an azeotrope at a ratio 0.7. The results are verifiable in real-space experiments on nematic quadrupoles confined to a two-dimensional plane.