AbstractThe effect of capillary pressure on multiphase flow is described by the capillary pressure gradient term in the fractional flow equation. This term is typically neglected during core‐flooding experiments, as it is not easily accessible. However, the capillary pressure is not constant during core flooding owing to a capillary pressure discontinuity at the core outlet. By imaging spatial fluid distributions under two‐phase steady‐state flow, we determine in situ phase saturations and capillary pressures from interfacial curvature measurements along an entire core, thus achieving the assessment of the capillary pressure gradient and its influence on multiphase flow. We demonstrate how the pore‐scale capillary pressure gradient affects multiphase flow and, in turn, the core‐scale relative permeability measurements. Further, an alternative approach to determining relative permeability from a single fractional flow experiment is proposed. The approach provides a range of relative permeabilities for a single fractional flow experiment and does not require capillary‐end correction, as the formulation directly accounts for the effect of capillary pressure on the flow.