The motion of a three-dimensional deformable drop between two parallel plane walls in a low-Reynolds-number Poiseuille flow is examined using a boundary-integral algorithm that employs the Green's function for the domain between two infinite plane walls, which incorporates the wall effects without discretization of the walls. We have developed an economical calculation scheme that allows long-time dynamical simulations, so that both transient and steady-state shapes and velocities are obtained. Results are presented for neutrally buoyant drops having various viscosity, size, deformability, and channel position. For nearly spherical drops, the decrease in translational velocity relative to the undisturbed fluid velocity at the drop center increases with drop size, proximity of the drop to one or both walls, and drop-to-medium viscosity ratio. When deformable drops are initially placed off the centerline of flow, lateral migration towards the channel center is observed, where the drops obtain steady shapes and translational velocities for subcritical capillary numbers. With increasing capillary number, the drops become more deformed and have, larger steady velocities due to larger drop-to-wall clearances. Non-monotonic behavior for the lateral migration velocities with increasing viscosity ratio is observed. Simulation results for large drops with non-deformed spherical diameters exceeding the channel height are also presented. (c) 2006 Elsevier Ltd. All rights reserved.