The immiscible two-phase flow in a T-shaped microchannel was simulated by using the perturbational finite volume (PFV) method and level set technique.The effects of the oil-water interfacial tension and the surface wetting angle between water phase and microchannel wall on the characteristics of oil-water two-phase flow were investigated and the accurate interface configuration of the oil-water flow was also obtained.Some typical oil-water two-phase flow patterns in the T-shaped microchannel were calculated.The numerical results were in good agreement with the experimental data.The discussions of numerical results help to understand the flow mechanisms of oil-water two-phase flow in the microchannel.That provides a new means of numerical prediction for the experimental design and industrial application of liquid-liquid two-phase flow in the microchannel.