Rotary drums are used as mixers, dryers, kilns and granulators. In all of these systems, powder cohesion deeply affects mixing and segregation, and it is critical in process scale up. In this paper we focus on the effect of cohesion in mixing and size segregation of binary mixtures of uniform and non-uniform sizes in a partially filled rotating drum. The cohesive force between particle is simulated using a square-well potential and the numerical model is used to characterize flow and mixing properties. The model is validated by comparison to experimental images. Results show a time-dependent spatial distribution of cohesive powder that depends on the magnitude of cohesion and friction. In uniform binary systems, as cohesion increases, the rate of mixing first increases and then decreases, however for the case of non-uniform binary systems, we observe different mixing patterns depending on the relative magnitude of forces acting between particles of same/different sizes. Unlike free flowing material, for cohesive mixtures, a higher rotation speed is found to enhance mixing performance.