The laminar nature of flow in mini and microchannels has pushed researchers to develop novel solutions to overcome reaction rate reduction and heat/mass transfer issues. In this regard, Taylor flow is one of the possible solutions that could be used to enhance mixing inside mini and microchannels with reasonable pressure drop. The hydrodynamics of Taylor liquid-liquid flow is numerically studied in this work by employing two different droplet generation methods, specifically T-junction and patching methods. To this end, a three-dimensional model of rectangular microchannel flow is considered. The computational domain was designed and meshed by ICEM CFD and then simulated with commercial software ANSYS Fluent. The interface between the two phases was captured using the Volume of Fluid (VOF) method. The generating and development process of water droplets dispersed in an ethylene/propylene glycol carrier phase for both methods is discussed in detail. According to the results, both methods show satisfactory performance regarding liquid film and droplet shape, with only a slight difference. However, the patching method was found to be more economical in terms of computational time. This study would improve the state of knowledge on two-phase flow simulation in microchannels and thus contribute to the understanding of Taylor flow hydrodynamics.