Modeling of a counterflow plasma reactor is presented, using liquid injection for the synthesis of fine particles. An experimental reactor has been developed in this laboratory, and feasibility has been demonstrated for synthesizing advanced ceramic powders. The flow field calculations show two major recirculating regions which are of importance for increasing the particles' residence time inside of the reactor. In addition, the temperature within these recirculation zones remains relatively uniform. For simulation, water droplet trajectories have been calculated for droplets produced by an injection probe. It is shown that the droplets in a size range below 50 μm in diameter will follow the streamlines and evaporate completely within a short traveling distance. This finding suggests that this reactor configuration provides a favorable environment for the synthesis of fine particles using liquid precursors.