The discovery of a highly-charged sheath region at the boundary between a plasma and a surface is one of the earliest and most important discoveries in plasma science. However sheath physics has almost always been omitted from studies of the dynamics of plasma-facing liquid surfaces which are rapidly assuming a pivotal role in numerous industrial and fusion applications. This paper presents full simulations of the plasma-sheath-liquid interface and finds good agreement with theoretical stability limits and experimental observations of cone formation and pulsed droplet ejection. Consideration of sheath physics is strongly encouraged in all future studies of plasma–liquid interactions.