Because of the practical importance of two-phase instabilities, substantial efforts have been made to date to understand the physical phenomena governing such instabilities and to develop computational tools to model the dynamics. The purpose of this study is to present a numerical model for the analysis of flow-induced instabilities in forced-convection steam generator. The model is based on the assumption of homogeneous two-phase flow and thermodynamic equilibrium of the phases. The thermal capacity of the heater wall has been included in the analysis. The model is used to analyze the flow instabilities in the steam generator and to study the effects of system pressure, mass flux, inlet temperature and inlet/outlet restriction, gap size, the ratio of d_o/d_i, and the ratio of q_i/q_o on the system behavior.