The passive phase separation concept was proposed to modulate flow patterns for heat transfer enhancement. By the flow pattern modulation, the gas tends to be near the wall and the liquid tends to be in the tube core. Experiment has been performed to verify the fresh idea and the flow pattern modulation mechanism was analyzed qualitatively. This paper focuses on the numerical simulation of the bubble dynamics for a single bubble in the vertical phase separation condenser tube to quantitatively explore the flow pattern mechanism, based on a multiscale grid system and the volume-of-fluid (VOF) method. It is found that: (1) the modulated liquid film thickness can be decreased by 70% compared to that in the bare tube region; (2) the modulated bubble traveling velocity can be doubled, causing the increased liquid velocity and velocity gradient in the annular region to weaken the fluid boundary layer; (3) the significantly increased bubble traveling velocity in the annular region promotes the mass and momentum exchange between the annular region and the core region, and yields the self-sustained pulsating flow in the core region. The above three factors are benefit for the performance improvement of the heat transfer facilities. The low grade energy utilization has become a hot area due to the energy shortage and environment problems worldwide. The Organic Rankine Cycle (ORC) is one of the solutions to recover low grade energy (waste heat, solar energy and geothermal energy etc.) [1]. The major problem of ORC is the low thermal efficiency operating at low temperatures. The effective strategy for ORC performance improvement is to decrease the exergy loss for each component and whole system to a maximum degree. For the evaporator and condenser involved in ORC, the temperature difference across the two sides shall be decreased to reduce the exergy loss, yielding the improved heat transfer performance. Usually, the condensation heat transfer coefficient with organic fluid is less than 1 kW/(m 2 K) [2], which is on the same magnitude of that for cooling water flowing in the shell side of the condenser. In other words, the thermal resistances at inside and outside of the tube are almost the same. Thus the enhancement of condensation heat transfer in the tube could significantly improve the condenser performance. With the multi-constraints of the increase of the utilization efficiency for low grade energy, decrease of the exergy loss and reduction of the fabrication cost, new principle and method to enhance the phase change heat transfer shall be developed. The conventional heat transfer enhancement techniques involve the fluid disturbance and the delayed fluid boundary layer development. A micro-grooved tube [3][4][5][6] is one of the examples belonging to these techniques. Usually, gas populates in the tube core and liquid populates near the tube wall, yielding a larger thermal resistance due to the thick liquid thickness near the wall. The phase distribution and