Abstract : In this paper, an SPH method based on the SPH--ALE formulation is used for modelling two-phase flows with large density ratios and realistic sound speeds. The SPH scheme is further improved to circumvent the tensile instability that may occur in the SPH simulations. The two-phase SPH solver is then used to model a benchmark problem of liquid impact on a rigid wall. The results are compared with an incompressible Level Set solver. Furthermore, a wave impact on a rigid wall with a large entrained air pocket is modelled. The SPH simulation is initialised by the output of a fully non-linear potential flow solver. The pressure distribution, velocity field and impact pressure are then analysed.