A system and method for increasing the refrigeration capacity of a direct expansion refrigeration system having a vapor separator and a vapor ejector. After the throttling process at the expansion device, the mixture of liquid and vapor enters the inlet separator. The vapor separator generates vapor to power the ejector through flashing of warm refrigerant liquid from a higher temperature and pressure to a lower pressure. The cooler refrigerant liquid then goes to the evaporator coil inlet. Furthermore, the system stabilizes the superheat of the outlet vapor and reduces fluctuations in outlet superheat caused by excess unevaporated liquid flowing from the outlets of the tubes due to mal-distribution at the inlet.