The earliest research in the field of two-phase flow was conducted by Lorentz (1909). The studies on the analysis of two-phase flow instabilities by Ledinegg (1938) created considerable interest concerning the phenomenon of thermally induced flow instability in two-phase flow systems. The objective of this review is to sum up the experimental and theoretical work carried out by various investigators over a period of several years, demonstrating and explaining three main instability modes of two-phase flow dynamic instabilities, namely, density-wave type, pressure-drop type and thermal oscillations, encountered in various boiling flow channel systems. The typical experimental investigations of these instabilities in tube boiling systems are indicated and the most popular models to predict the two-phase flow dynamic instabilities, namely the homogenous flow model and the drift-flux models are clarified with the solution examples and the validation of the model results with experimental findings are also provided. (C) 2007 Elsevier Ltd. All rights reserved.