The thermodynamically consistent, rate dependent model for turbulent two-phase flows was used to study the special case of a simple shear. The variations of the fluctuation kinetic energy with the solid volume fraction was evaluated. The kinetic model for rapid flows of granular materials, which includes frictional losses, was used for studying gravity flow down an inclined chute. The velocity profiles were obtained and the results were compared with the data of Johnson et al. The effect of diameter to height ratio was also studied. Further progress has been made in developing a computational model for rapid granular and two-phase flows in complex geometries. The discrete element scheme was used and the unsteady developing granular flow down a chute was analyzed. The results are compared with the experimental data of Savage. The numerical procedure for analyzing two-phase flows was further developed. The special case of duct flow in a gravitational field is analyzed. Further progress has been made in the construction of the experimental monolayer simple shear flow device. Assembling the device was completed.