In the description of a reservoir, grid data volume created from the 3D geological model have grids of 105 to 106. So it is needed to be scaled-up for numerical simulation. This paper introduces the conventional steady-state method and dynamic method about two-phase flow in detail from the basic grid upscaling principle. Favorable methods are used to combine grids so as to upscale the relative permeability curve and capillary pressure curve on layered geologic model and vertical section model and 3D geologic model. Results show that the upscaled relative permeability curve and capillary pressure curve differs much from its original state and the results of the production dynamics predicted based on both of them match better than the results not based on them. Therefore, it's necessary to upscale both relative permeability curve and capillary pressure curve to ensure more accuracy of the reservoir simulation.
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