Abstract– In the absence of global turbulence, solid particles in the solar nebula tend to settle toward the midplane, forming a layer with enhanced solids/gas ratio. Shear relative to the surrounding pressure-supported gas generates turbulence within the layer, inhibiting further settling and preventing gravitational instability. Turbulence and size-dependent drift velocities cause collisions between particles. Relative velocities between small grains and meter-sized bodies are typically about 50 m s−1 for isolated particles; however, in a dense particle layer, collective effects alter the motion of the gas near the midplane. Here, we develop a numerical model for the coupled motions of gas and particles of arbitrary size, based on the assumption that turbulent viscosity transfers momentum on the scale of the Ekman length. The vertical distribution of particles is determined by a balance between settling and turbulent diffusion. Self-consistent distributions of density, turbulent velocities, and radial fluxes of gas and particles of different sizes are determined. Collective effects generate turbulence that increases relative velocities between small particles, but reduce velocities between small grains and bodies of decimeter size or larger by bringing the layer’s motion closer to Keplerian. This effect may alleviate the “meter-size barrier” to collisional growth of planetesimals.