The dynamic character of a system of the governing differential equations for the one- dimensional two-fluid model, where the momentum flux parameters are employed to consider the velocity and void fraction distribution in a flow channel, is investigated. In response to a perturbation in the form of a＇traveling wave, a linear stability analysis is peformed for the governing differential equations. The expression for the growth factor as a function of wave number and various flow parameters is analytically derived. It provides the necessary and sufficient conditions for the stability of the one-dimensional two-fluid model in terms of momentum flux parameters. It is demonstrated that the one-dimensional two-fluid model employing the physical momentum flux parameters for the whole range of dispersed flow regime, which are determined from the simplified velocity and void fraction profiles constructed from the available experimental data and $C_{o}$ correlation, is stable to the linear perturbations in all wave-lengths. As the basic form of the governing differential equations for the conventional one-dimensional two-fluid model is mathematically ill posed, it is suggested that the velocity and void distributions should be properly accounted for in the one-dimensional two-fluid model by use of momentum flux parameters.s.