The evolution and structure of a spatially evolving two-dimensional mixing layer seeded with small bubbles are numerically investigated. The one-way coupling approach is first employed to show that characteristics of bubble dispersion are dominated by the possibility for sufficiently small bubbles to be captured in the core of the vortices. A stability analysis of the ordinary differential equation system governing bubble trajectories reveals that this entrapment process is governed by the presence of stable fixed points advected by the mean flow. Two-way coupling simulations are then carried out to study how the global features of a two-dimensional flow are affected by bubble-induced disturbances. The local interaction mechanism between the two phases is first analyzed using detailed simulations of a single bubbly vortex. The stability of the corresponding fixed point is found to be altered by the collective motion of bubbles. For trapped bubbles, the interphase momentum transfer yields periodic sequences of entrapment, local reduction of velocity gradients, and eventually escape of bubbles. Similar mechanisms are found to take place in the spatially evolving mixing layer. The presence of bubbles is also found to enhance the destabilization of the inlet velocity profile and to shorten the time required for the rollup phenomenon to occur. The most spectacular effects of small bubbles on the large-scale flow are a global tilting of the mixing layer centerline towards the low-velocity side and a strong increase of its spreading rate. In contrast, no significant modification of the flow is observed when the bubbles are not captured in the large-scale vortices, which occurs when the bubble characteristics are such that the drift parameter defined in the text exceeds a critical value. These two contrasted behaviors agree with available experimental results.