Many thermohydraulic issues about the safety of light water reactors are related to complicated two-phase flow phenomena. In these phenomena, computational fluid dynamics (CFD) analysis using the volume of fluid (VOF) method causes numerical diffusion generated by the first-order upwind scheme used in the convection term of the volume fraction equation. Thus, in this study, we focused on an interface compression (IC) method for such a VOF approach; this technique prevents numerical diffusion issues and maintains boundedness and conservation with negative diffusion. First, on a sufficiently high mesh resolution and without the IC method, the validation process was considered by comparing the amplitude growth of the interfacial wave between a two-dimensional gas sheet and a quiescent liquid using the linear theory. The disturbance growth rates were consistent with the linear theory, and the validation process was considered appropriate. Then, this validation process confirmed the effects of the IC method on numerical diffusion, and we derived the optimum value of the IC coefficient, which is the parameter that controls the numerical diffusion.