AbstractOne of the important limitations of the interface tracking algorithms is that they can be used only as long as the local computational grid density allows surface tracking. In a dispersed flow, where the dimensions of the particular fluid parts are comparable or smaller than the grid spacing, several numerical and reconstruction errors become considerable. In this paper the analysis of the interface tracking errors is performed for the volume‐of‐fluid method with the least squares volume of fluid interface reconstruction algorithm. A few simple two‐fluid benchmarks are proposed for the investigation of the interface tracking grid dependence. The expression based on the gradient of the volume fraction variable is introduced for the estimation of the reconstruction correctness and can be used for the activation of an adaptive mesh refinement algorithm. Copyright © 2002 John Wiley & Sons, Ltd.