In the framework of PSI’s FAST code system, the TRACE thermal-hydraulics code is being extended for representation of sodium two-phase flow. As the currently available version (v.5) is limited to the simulation of only single-phase sodium flow, its applicability range is not enough to study the behavior of a Sodium-cooled Fast Reactor (SFR) during a transient in which boiling is anticipated. The work reported here concerns the extension of the two-fluid models, which are available in TRACE for steam-water, to sodium two-phase flow simulation. The conventional correlations for ordinary gas-liquid flows are used as basis, with optional correlations specific to liquid metal when necessary. A number of new models for representation of the constitutive equations specific to sodium, with a particular emphasis on the interfacial transfer mechanisms, have been implemented and compared with the original closure models. As a first application, the extended TRACE code has been used to model experiments that simulate a loss-of-flow (LOF) accident in a SFR. The comparison of the computed results, with both the experimental data and SIMMER-III code predictions, has enabled validation of the capability of the modified TRACE code to predict sodium boiling onset, flow regimes, dryout, flow reversal, etc. The performed study is a first-of-a-kind application of the TRACE code to two-phase sodium flow. Other integral experiments are planned to be simulated to further develop and validate the two-phase sodium flow methodology.