The benefits of slug flow capillary microreactor exhibit the ability to adjust two individual transport mechanisms, i.e. convection inside the slug and diffusion between two slugs. The mass transfer rate is enhanced by internal circulation, which arises due to the shear between slug axis and continuous phase or capillary wall. The knowledge of circulation patterns within the slug plays an important role in the design of a capillary microreactor. Apart from this, well defined slug flow generation is a key activity in the development of methodology to study hydrodynamics and mass transfer. In the present paper we discuss computational fluid dynamics (CFD) modelling aspects of internal circulations (single phase) and slug flow generation (two-phase).