Lattice Boltzmann method (LBM) has been used in this study to understand the behavior of bubble motion and bubble coalescence in liquids. Highly isotropic gradient vectors have been obtained on a lattice for two-phase simulations using LBM. For a fully periodic domain, bubble dynamics and shape for a single bubble and multiple bubbles are dependent on Eotvos number, Reynolds number and Morton number. For single bubble simulations, computations were done for high Eotvos and low to moderate Reynolds numbers, and the results are matched with the experimentally quantified flow visualization chart. The drag coefficient for single bubble motion under buoyancy for both two- and three-dimensional simulations compares well with existing correlations. For multiple bubbles, the bubble dynamics is dictated by the vortex pattern of the leading bubble, which allows the bubbles to coalesce. Coalescence can be described as a three stage process: collision; drainage of the liquid film between adjacent bubbles to a critical thickness; and rupture of this thin film of liquid. Such simulations have also been run for different configurations of the initial bubble distribution for both in-line and staggered bubble configuration to show the effect of vortex shedding on the oscillatory motion of the bubbles and subsequent coalescence. (C) 2008 Elsevier Ltd. All rights reserved.