A numerical algorithm based on the VOF method was proposed to solve two-phase/two-fluid flow problems by the authors recently. Different from other surface reconstruction approaches, the interface between the two fluids is represented by a continuous surface as the contour surface of the VOF function. It is robust and easy to implement. In this article, the method is extended to deal with three-dimensional flows. Also considered in the study is the heat transfer in the flow with or without phase change. In order to validate the method, a variety of flow problems are under consideration and comparison with empirical correlations is made. The method is first tested by considering a benchmark case with prescribed 3-D velocity field. It is then applied to the problem of bubble rising in a quiescent liquid, followed by investigating the splashing of a drop impacting on a liquid film. To assess the heat transfer model for phase change, the boiling flow emerging from a superheated planar film is under investigation. The last one considered is a jet flow caused by injection of high-temperature octane into a water container. (C) 2015 Elsevier Ltd. All rights reserved.