The Chexal-Harrison two-phase wall and inter-phase friction models developed by EPRI newly and the simple two-phase wall and inter-phase heat transfer models put forward by the paper are used to set up the two-fluid model which is fitted for boiling heat transfer and flow in narrow annular channel.On the base of the two-fluid model,a thermal hydraulic code-THYME is accomplished.Then the thermal hydraulic characteristic of narrow annular channel is analyzed by RELAP5/MOD3.2 code and THYME code.Com-pared with experimental data,RELAP5/MOD3.2 underestimates the outlet steam,and the results of THYME is agreed with the experimental data.