This paper presents a numerical study using TWO-FLUID MODEL in order to compare the effect of hydrodynamic and hydrostatic MODELs for pressure correction term in TWO-FLUID MODEL in MODELing gasliquid two-phase flows to provide a more accurate MODEL. TWO-FLUID MODEL is solved by Godunov Approximate Riemann Solver. The TWO-FLUID MODEL is applied using both hydrodynamic pressure correction term and hydrostatic pressure correction term for four sample examples including Water Faucet Case, Water-Air Separation Case, Toumi’s Shock Tube Case, and Large Relative Velocity Shock Tube Case. Hydrostatic pressure correction term is neglected for vertical geometry, therefore, in this geometry; TWO-FLUID MODEL cannot be HYPERBOLIC. Thus, hydrostatic pressure correction term is not a stabilizing term. Also, in horizontal pipe and for atmospheric conditions, hydrostatic pressure correction term presents better results than hydrodynamic pressure correction term. But, in non-atmospheric conditions, hydrodynamic pressure correction term presents better results. Therefore, in order to select a suitable pressure correction term for TWO-FLUID MODEL, we consider geometry (vertical or horizontal) and flow conditions (atmospheric or under-pressure). Also, hydrodynamic pressure correction term in twofluid equations system is HYPERBOLIC in a broader range than hydrostatic pressure correction term.