A numerical study was conducted to assess the performance of a Two-Fluid Model (TFM) developed for gas-solid flow in predicting liquid-solid flow, as well as a TFM specifically modified for liquid-solid flow, which considers the effect of the interstitial fluid. Both cases use the Kinetic Theory of Granular Flow (KTGF) for prediction of the solid phase flow features. Some of the physics involved in gas-solid and liquid-solid flows is intuitively different, and some model terms that can be neglected in a gas-solid formulation turn out to be important for liquid-solid flow. For instance, the much larger density and viscosity of the liquid compared to a gas suggest that the solid particle fluctuations and collisions are reduced. Three intermediate model formulations were developed to assess the relevance of the interstitial terms. The intermediate model formulations, together with the two base case models, were assessed based on their predictions for the case of fully developed, turbulent, steady flow of a liquid solid mixture in a vertical pipe. The main differences in the model formulations pertain to the transport equations for the streamwise liquid momentum, granular temperature and turbulence kinetic energy. The predictions considered such flow features as: the velocity profiles of both the liquid and solid phases, the solids volume fraction profile and budgets of the transport equations for the granular temperature and turbulence kinetic energy. The results obtained were used to identify the most significant model terms. These include modified formulations for the solids viscosity and granular temperature conductive coefficient to include the effects of the interstitial fluid. The single most important term was the model for the long-range particle fluctuations through the fluid, which played a dominant role in the balance of the turbulence kinetic energy and granular temperature transport equations. The present analysis demonstrates that this term should be reconfigured as a sink term in the granular temperature equation and a source term in the turbulence kinetic energy equation. With this modification, the numerical predictions were much closer to the experimental data, especially in terms of the solids volume fraction profile.