DNS simulations of two-phase turbulent bubbly channel flow at Re(tau) = 180 (Reynolds number based on friction velocity and channel half-width) were performed using a stabilized finite element method (FEM) and a level set approach to track the air/water interfaces. Fully developed turbulent single-phase solutions obtained previously using the same stabilized FEM code were used as the initial flow field, and an appropriate level-set distance field was introduced to represent the air bubbles. Surface tension and gravity forces were used in the simulations to physically represent the behavior of a bubbly air/water two-phase flow having a liquid/gas density ratio of 858.3. The simulation results were averaged to obtain the liquid and gas mean velocity distributions, the local void fractions as well as the local turbulent kinetic energy and dissipation rate of the liquid phase. The liquid phase parameters were compared with the corresponding single-phase turbulent channel flow to determine the bubbles' influence on the turbulence field. (C) 2011 Elsevier Ltd. All rights reserved.