A study of literatures on flow boiling heat transfer and two-phase flows inside microchannels is summarized. The potential applications, fabrication method and efforts to determine certain dimensional threshold for microchannels classifications are discussed. For the last two decades, numerous two-phase flow and heat transfer models for microchannels have been developed; many of them were derived from empirical models originally applied for conventional channels. Those models are discussed here along with a brief review on recent development of theoretical and phenomenological-based models for microchannels. This study is devoted to provide a review of important issues on flow boiling heat transfer and two-phase flows inside microchannels, including two-phase flow patterns, boiling heat transfer mechanism and correlations developments, pressure drop and prediction methods, and critical heat flux.