The objective of this study is to improve the current phenomenological understanding of slug flow characteristics over an entire hilly-terrain section, and in particular, the slug initiation mechanism at the lower dip. The experimental part of this study revealed that five possible flow behavior categories exist along a hilly-terrain section. In these categories, the flow behavior at the dip is coupled with flow conditions of the upstream downhill section. This qualitative classification was superimposed on steady-state flow pattern maps for the upstream downhill section in an attempt to relate the qualitative flow behavior at a dip to the flow pattern maps through the flow behavior in the downhill section. Statistical analyses of mean slug length, maximum slug length, slug frequency, and slug length variation across the hilly-terrain pipeline revealed that slug length distribution characteristics change across a symmetrical hilly-terrain pipeline. Physical modeling of the slug initiation mechanism and the characteristics of initiated slugs at the lower dip indicated two main mechanisms, namely, wave growth and wave coalescence initiation mechanisms. The initiated "pseudo slugs" or slug characteristics of each mechanism differ significantly with respect to frequency, length, liquid holdup and velocity. It was observed that pseudo slugs initiated by the wave coalescence mechanism have velocities less than the mixture velocity due to gas blowing through the slug body. (c) 2004 Elsevier Ltd. All rights reserved.