When reactivity insertion such as refueling occurs in CANDU reactors, the power and the water levels are tilted in the upper outer zone of the LZCS (Liquid Zone Control System) and fluctuate unstably for a certain period of time (1-5 days). The instability described above is observed in most CANDU reactors in service around the world, but its root cause is unidentified and no solutions to this problem have been established. Therefore, this study attempted to prove experimentally and analytically that the root cause lies in the hold-up of light water on the top of the TSP (Tube Support Plate) due to the mismatch between net volumetric flow rate of light water and helium crossing the narrowed porous TSP installed within the LZCS compartment. Our method was to perform a hydrodynamic simulation of in/outflow of light water and helium. Two solutions for the aforementioned instability of LZCS are suggested. One is to regulate the compartment for both inflowing helium gas and outflowing light water; the other is to enlarge the flow paths of helium and light water within TSP. The former may be applicable to nuclear reactors in service and the latter to those planned for construction.