Recently, laboratory tests have shown a positive response to chelating agent brines in sandstone and carbonate reservoirs as a new enhanced oil recovery technique. There is little research on direct and visual evidence of underlying mechanisms behind the chelating agent effects. In this study, a microfluidic method was established using glass micromodel to investigate the micro-mechanisms of displacement under ethylenediaminetetraacetic acid (EDTA) and diethylenetriaminepentaacetic acid (DTPA) chelating agent at the pore-scale level. Furthermore, for the study of fluid/fluid interactions, EDTA brine and DTPA brine were brought into contact with two different crude oils to examine the possible compositional changes. For this purpose, sample tests, Fourier Transform Infrared Spectroscopy (FTIR), microscopic image analysis, and dynamic interfacial tension (IFT) measurements were conducted. The FTIR data showed EDTA brine and DTPA brine induced changes in the oil sample composition compared to seawater, which can be related to the formation of water-in-oil micro-dispersions. Microscopic image analysis on samples confirmed the formation of these micro-dispersions. The visual study by the micromodel demonstrated the micro-dispersion formation in the tertiary injection of EDTA and DTPA brine. Based on the observation made, the pore-scale mechanisms of chelating agent flooding involve the chelating agent brine penetrating the crude oil, resulting in micro-dispersion formation. These micro-dispersions tend to alter wettability to a more water-wet state, facilitate oil detachment from the surface, redistribution of oil saturation, and thus leading to improved oil recovery. The observed IFT reduction aids the penetration of EDTA and DTPA brine into the crude oil to form micro-dispersions.