The multiphase heat transfer could be enhanced by creating thin liquid film on the wall. The phase separation concept is called due to the separated flow paths of liquid and gas over the tube cross section to yield thin liquid film. Our proposed heat transfer tube consists of an annular region close to the wall and a core region, interfaced by a suspending mesh cylinder in the tube. The heat transfer tube is a multiscale system with micron scale of mesh pores, miniature scale of annular region and macroscale of tube diameter and length. Great effort has been made to link from micron scale to macroscale. The Volume of Fluid (VOF) method simulates air/water two-phase flow for vertical upflow. The three-dimensional system was successfully converted to a two-dimensional one by using three equivalent criteria for mesh pores. The non-uniform base grid generation and dynamic grid adaption method capture the bubble interface. The numerical results successfully reproduce our experimental results. The numerical findings identify the following mechanisms for the enhanced heat transfer: (a) counter-current flow exists with upward flow in the annular region and downward flow in the core region; (b) void fractions are exact zero in the core region and higher in the annular region; (c) the liquid film thicknesses are decreased to 1/6-1/3 of those in the bare tube section; (d) the gas-liquid mixture travels much faster in the annular region than in the bare tube; (e) three-levels of liquid circulation exists: meter-scale bulk liquid circulation, moderate-scale liquid circulation around a single-elongated-ring-slug-bubble, and microliquid circulation following the ring-slug-bubble tails. These liquid circulations promote the fluid mixing over the whole tube length and within the radial direction. The modulated parameters of void fractions, velocities and liquid film thicknesses in the annular region and three-levels of liquid circulation are greatly beneficial for the multiphase heat transfer enhancement. (C) 2013 Elsevier Ltd. All rights reserved.