A novel thermodynamically consistent lattice Boltzmann model that enables dynamical effects of two-phase fluids is developed. The key innovation is the application of the entropic lattice Boltzmann stabilization mechanism to control the dynamics at the liquid-vapor interface. This allows us to present a number of simulations of colliding droplets, including complex phenomena such as the formation of a stable lamella film. Excellent agreement of the simulation with recent experiments demonstrates the viability of the present approach to simulation of complex dynamic phenomena of multiphase fluids.