The effects of adding water vapor to the air stream on flame properties and soot volume fraction were investigated numerically in a laminar coflow ethylene/air diffusion flame at atmospheric pressure by solving the fully elliptic conservation equations and using a detailed C-2 reaction mechanism including PAH up to pyrene and detailed thermal and transport properties. Thermal radiation was calculated using the discrete-ordinates method and a statistical narrow-band correlated-k based wide band model for the absorption coefficients of CO2 and H2O. Soot formation was modeled using a PAH based inception model and the HACA mechanism for surface growth and oxidation. Addition of water vapor significantly reduces radiation heat loss from the flame primarily through reduced soot loading and flame temperature. The added water vapor affects soot formation and flame properties through not only dilution and thermal effects, but also through chemical effect. The chemical effect is as significant as the dilution and thermal effects. The primary pathway for the chemical effect of water vapor is the reverse reaction of OH + H-2 <-> H + H2O. Our numerical results confirm that the reduced H radical concentration leads to lower PAH concentrations and consequently lower soot inception rates. In contrast, the radiation effect due to the added water vapor was found to have a minor influence on both flame structure and soot formation in the laminar diffusion flame investigated. Crown Copyright (C) 2014 The Combustion Institute. Published by Elsevier Inc. All rights reserved.