A new lattice hydrodynamic model for two-lane traffic flow is proposed by introducing the density difference effect (DDE). Using linear stability theory, stability condition of the presented model is obtained. Jamming transitions among the freely moving phase, the coexisting phase, and the uniform congested phase are investigated by employing nonlinear analysis. The modified KdV (mKdV) equation near the critical point is derived and the kink-antikink soliton solutions are obtained. Numerical simulations are presented to verify analytical results, showing that DDE can improve the stability of traffic flow effectively.