For the development of 45w%Pb-55w%Bi cooled direct contact boiling water small fast reactor (PBWFR), Pb-Bi-water direct contact boiling two-phase flow loop has been fabricated and operated. The loop consists of a Pb-Bi flow loop (four heater pin bundle, a chimney, an upper plenum, a level meter tank, an air-water cooler, and an electromagnetic flow meter) and a water-steam flow loop (a pump, a preheated, an injection nozzle, the chimney, the upper plenum with mist separators and dryers, a condenser, a buffer tank, and an air-water cooler). At the rated operating condition system pressure is 7 MPa. The sub-cooled water was injected into a Pb-Bi flow in the chimney. A power of the heater pin bundle was controlled to obtain the inlet and outlet temperatures of the heater bundle. The Pb-Bi and steam flows were simulated analytically using one-dimensional models of frictional and form losses and a drag force. The Pb-Bi-steam two-phase frictional pressure loss was calculated by means of the two-phase flow multiplication factor of Lockhart-Martinelli model. It was found that Pb-Bi temperature decreased quickly in the chimney due to high heat transfer rate of Pb-Bi-water direct contact boiling. The volumetric overall heat transfer coefficient was 60–310 kW/m 3K, and decreased with the superheat.