This paper reviews the state-of-the-art in the prediction of multidimensional multiphase flow and heat transfer phenomena using a four field, two-fluid model. It is shown that accurate mechanistic computational fluid dynamic (CFD) predictions are possible for a wide variety of adiabatic and diabatic flows using this computational model. In particular, the model is able to predict the bubbly air/water upflow data of Serizawa (Serizawa, A., 1974. Fluid dynamic characteristics of two-phase flow. Ph.D. thesis, (Nuclear Engineering), Kyoto University, Japan), the downflow data of Wang et al. (Wang, S.K., Lee, S.J., Lahey Jr., R.T., Jones, O.C., 1987. 3-D turbulence structure and phase distribution measurements in bubbly two-phase flows. Int. J. Multiphase Flow 13 (3), 327–343), the isosceles triangle upflow data of Lopez de Bertodano et al. (Lopez de Bertodano, M., Lahey Jr., R.T., Jones, O.C., 1994b. Phase distribution in bubbly two-phase flow in vertical ducts. Int. J. Multiphase Flow 20 (5), 805–818), the heated annular R-113 subcooled boiling data of Velidandala, et al. (Velidandla, V., Pulta, S., Roy, P., Kaira, S.P., 1995. Velocity field in turbulent subcooled boiling flow. ASME Preprint HTD-314, 107–123) and the R-113 CHF data of Hino and Ueda (Hino, R., Ueda, T., 1985. Studies on heat transfer and flow characteristics in subcooled boiling-part 2, flow characteristics. Int. J. Multiphase Flow 11, 283–297). It can also predict external two-phase flows, such as those for spreading two-phase jets (Bonetto, F., Lahey Jr., R.T., 1993. An experimental study on air carryunder due to a plunging liquid jet. Int. J. Multiphase Flow 19 (2), 281–294) and multiphase flows around the hull of naval surface ships (Carrica, P.M., Bonetto, F., Drew, D.A., Lahey, R.T., 1999. A polydispersed model for bubbly two-phase flow around a surface ship. Int. J. Multiphase Flow 25 (2), 257–305).