A discrete numerical method based on a molecular approach has been used as an alternative technique for the study of liquid drop dynamics. The Weber number and the Impact number are found to be the key parameters that determine the outcome of collision of two liquid droplets. This study confirms the experimental fact that the number of daughter droplets resulting from the collision of two droplets increases with the Impact number for a large Weber number. The shapes of the droplets at different phases during collision are in accord with the experimental observation.