A new microfluidic method of particle separation was proposed and studied theoretically in this paper. This method is based on the induced charge electro-osmotic flow (ICEOF) and polarizability of dielectric particles. In this method, a pair of metal plates is embedded on the side channel walls to create a region of circulating flows under applied electric field. When a dielectric particle enters this region, the vortices produced by ICEOF around the particle will interact with the circulating flows produced by the metal plates. Such hydrodynamic interaction influences the particle's trajectory, and may result in the particle being trapped in the flow circulating zone or passing through this flow circulating zone. Because the hydrodynamic interaction is sensitive to the applied electric field, and the polarizability and the size of the particles, separation of different particles can be realized by controlling these parameters. Comparing with electrophoresis and dielectrophoresis methods, this strategy presented in this paper is simple and sensitive.