Using high-speed laser-induced fluorescence (LIF) technique, investigation of droplets entrained from film surface in annular two-phase flow is performed. The droplets are studied simultaneously with waves on liquid film surface, and their dynamics is described with relation to the wavy structure of liquid film. Initial velocities and diameters of droplets are measured at the initial stage of their evolution, right after the entrainment act. Deposition of droplets on film surface, evolution of caverns created on liquid film due to the impact, and secondary entrainment are described.