A two-phase (gas and liquid) flow analysis solver, named CUPID, has been developed for a realistic simulation of transient two-phase flows in light water nuclear reactor components. In the CUPID solver, a two-fluid three-field model is adopted and the governing equations are solved on unstructured grids for flow analyses in complicated geometries. For the numerical solution scheme, the semi-implicit method of the RELAP5 code, which has been proved to be very stable and accurate for most practical applications of nuclear thermal hydraulics, was used with some modifications for an application to unstructured non-staggered grids. This paper is concerned with the effects of interpolation schemes on the simulation of two-phase flows. In order to stabilize a numerical solution and assure a high numerical accuracy, the second-order upwind scheme is implemented into the CUPID code in the present paper. Some numerical tests have been performed with the implemented scheme and the comparison results between the second-order and first-order upwind schemes are introduced in the present paper. The comparison results among the two interpolation schemes and either the exact solutions or the mesh convergence studies showed the reduced numerical diffusion with the second-order scheme.